Mr. Speaker, first let me compliment the gentleman from Missouri (Mr. Blunt), the sponsor of this legislation, and the gentleman from Tennessee (Mr. Ford) for reaching, I think, a fair compromise on some very controversial issues so that…
Mr. Speaker, first let me compliment the gentleman from Missouri (Mr. Blunt), the sponsor of this legislation, and the gentleman from Tennessee (Mr. Ford) for reaching, I think, a fair compromise on some very controversial issues so that we really do have a chance to enact a bill this year that can help our faith-based institutions, our nonprofit institutions in carrying out their very important responsibility. Major compromises were reached along with Senator Lieberman and Senator Santorum in the Senate that would provide our sponsors in the House to eliminate from the bill a very controversial provision dealing with employment discrimination. I know that many of our Members have been concerned about that. Those provisions are not included in this legislation, and I want to compliment all involved who were responsible for the removal of that provision.
I also want to compliment the architects of this legislation for working out a fair compromise as it relates to a foundation's administrative costs. We have a fair compromise on that issue that puts some Federal controls on administrative costs but also allows the foundations to be able to do their business in the most cost-effective way.
In my view, this legislation is a positive help to faith-based institutions, nonprofit institutions and is consistent with the tradition of our country to maintain the church-state separation. There is help here for those who want to privately give, whether they be individuals or corporations, to our nonprofit community through the use of direct contributions or their IRAs.
Mr. Speaker, let me also agree with the gentleman from Wisconsin (Mr. Ryan) in regards to the provisions relating to housing.
I think this bill is a positive bill. I agree with the distinguished Republican whip that this bill has moved in a bipartisan way through this body and through the other body and we therefore have a good bill before us. I would urge my good friend to continue that process and let Members vote their convictions on the amendment that I will be offering a little bit later.
It includes two more provisions. It builds on the underlying bill but adds two more provisions that has strong bipartisan support not only in this body but also the other body. It provides an extra $1.1 billion for the social services block grant program. In 1996, we were financing the social services block grant program at $2.8 billion a year. We cut it in the welfare bill to $2.38 billion a year but we made a commitment in that legislation that we would restore that cut in 2003. That is exactly what the Cardin amendment will do. And it has strong bipartisan support. Many Members on the Republican side of the Committee on Ways and Means support that change. I hope they will vote that way today. It is vitally important to our faith-based institutions.
Let me just give my colleagues one example. Catholic Charities relies upon public programs for 62 percent of their support. The social services block grant program is a very important part of that. It provides day care for low-income families, offers counseling services to at-risk youth, provides nutritional assistance to the elderly and provides community-based care to the disabled. This is their number one priority as far as help in order to be able to carry out their very important mission.
The second change is that the bill is fully paid for by closing corporate loopholes through tax shelters. I know that a document was sent out that says this is extremely controversial. If it is extremely controversial, why did 95 members of the other body vote in favor of it? It passed 95 to 3 or 4 in the Senate. It is not controversial. It is controversial to add $13 billion more to the national debt and not pay for it. So this amendment pays for the cost of the bill through a provision that is good tax policy.
Our deficit this year is projected to grow by over $500 billion. That does not even include the $87 billion that the President has asked us to pass by a supplemental appropriation to prosecute the war in Iraq and Afghanistan. What my amendment will do is close tax shelters by codifying the practice of the courts that will bring in moneys from activities that have no economic value. It is what the other body did to pay for it.
There is one more thing I might add. We are in the closing days of this first session of this Congress. Major differences between the House and Senate will have difficult times being reconciled in conference. The adoption of my amendment gives us a much better chance to get this bill to the President this year. I urge my colleagues not only to support the underlying bill, support the Cardin amendment so that we can get a bill to the President and that we can also accomplish two more important factors that I think are supported on a bipartisan basis. I urge support for the amendment that will be offered later and I hope that we can continue to work in a bipartisan way to get this bill to the President's desk.
Mr. Speaker, I offer an amendment in the nature of a substitute.
Mr. Speaker, I yield myself such time as I may consume.
Mr. Speaker, this amendment adds two important provisions to the underlying legislation. As I mentioned during general debate, I support the underlying bill. I think a good compromise has been reached on some very important issues, including the elimination of the employment discrimination provisions and a compromise in regards to foundations' administrative costs. I think this bill will help nonprofit, faith- based organizations consistent with our tradition of church and State.
The two additions that my amendment adds are very important to this legislation. The Republican whip pointed out that this legislation has been developed among Democrats and Republicans in a bipartisan way and in cooperation with the other body, particularly Senator Lieberman and Senator Santorum. All I ask is that the Members consider this amendment and vote on it by their convictions. Both provisions have bipartisan support.
The first provision adds an additional $1.1 billion to the next fiscal year for the social services block grant, taking it from $1.7 billion to $2.8 billion. This is not a novel concept. I see the gentlewoman from Connecticut (Mrs. Johnson) here who was very instrumental in the social services block grant program and in the welfare reform legislation. When we passed welfare reform in 1996, we reduced the social services block grant from $2.8 billion to $2.38 billion, but we also included in that legislation a commitment to our States that in 2003 we would reinstate the level at $2.8 billion. That is exactly what this amendment would do.
Number two, this amendment is consistent with the other body. They have already put the money in their reported bill. It puts us together with the other body at $2.8 billion for next year.
Now, what is the social services block grant? Why is it so relevant to the legislation that is before us? If we ask the faith-based groups as to what is the most important funding source for them to be able to do their work, they will tell us it is the social services block grant program. It provides funding for day care for low-income families, for offering counseling services to at-risk children, nutritional assistance to the elderly, and providing community-based care to the disabled.
I need not tell my colleagues the fiscal restraints that our States are currently confronting, with record deficits, and they are forced to cut these very programs that the social services block grant program helps them to fund. For my own State of Maryland, this amendment will mean $20 million; for the State of California, $132 million; for the State of Texas, $81 million; New York, $73 million; Florida, $63 million. If we take a look at our major faith-based institutions such as Catholic Charities, United Jewish Community, Lutheran Services, Salvation Army, in each one of those cases they rely in large part on government assistance to fund these community-based programs. For Catholic Charities it is over 650 percent; 62 percent of their support comes from governmental grants. The social services block grant program is key. This amendment allows us to live
up to our commitment that we made in 1996 to restore the level to what it was in 1996.
The second part of this amendment is for fiscal responsibility. I think there is not a person in this body who has not lamented the fact that we now have over $500 billion annual deficit that we are adding to the national debt, and that does not include the $87 billion the President has requested for Iraq and Afghanistan. We have a fiscal responsibility as legislators to make sure we do not add more to that national debt. That is why the other body reached out to find a revenue offset to the bill that they reported.
My amendment is not original. We have taken basically the provisions that were included in the other body to say that if you are doing a tax shelter you should not get the benefit. The courts are already doing that, and the revenues that it will generate will offset the revenues that are lost under this bill so that we do not add to the deficit.
Now, I have gotten some material this morning and I have listened to the debate as to why this would not be a good idea. I have heard that there was a sheet put out that said this was extremely controversial. I then listened to why it was extremely controversial, considering it received 95 votes in the other body. The first reason that my colleague said is that it would be administratively difficult. Well, this is currently being done by the courts on a case-by-case basis. We have a responsibility as the legislature to clarify this law. We should not be doing tax policy in our courts. That is our responsibility.
I have not heard one complaint against the fact that tax shelters should be outlawed and there should be penalties for tax shelters. This bill deals with it in a responsible way.
The second point I have heard is that it is retroactive. Now, let me tell my colleagues, the date in this bill is what we have done by tradition in this body since I have been here and well before that. When a bill is noted by a committee, they use that as the effective date, and that is exactly what is in the bill that was reported by the other body. We incorporate that same date. Now, if that is retroactivity, the other side has been guilty of it many, many times. So let us be at least straightforward in the debate. Let people vote their convictions. We should pay for the bill and we should provide help to the faith-based organizations in our States through the social services block grant that many of us have supported in the past.
Mr. Speaker, I urge my colleagues to support the amendment.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield 1 minute to the gentleman from Texas (Mr. Doggett).
Mr. Speaker, I believe I control the time.
Mr. Speaker, I have no objection to the gentleman from California (Mr. Thomas) getting time from the gentleman from Missouri (Mr. Blunt) to respond.
Mr. Speaker, I yield myself 30 seconds.
To clarify some of the points that my chairman made, when he referred to the States having all this TANF money that is left over, let me point out that the States are currently spending more money every year in TANF funds than they currently receive and that they have obligated almost all of their money. The 10 percent transfer authority has been approved every year. That is nothing new. So when he mentions these issues I think we need to clarify that. And on the effective dates we are following the tradition of this House under Republican leadership. There is really nothing new this year.
Mr. Speaker, I yield 4 minutes to the gentleman from Michigan (Mr. Levin).
(Mr. LEVIN asked and was given permission to revise and extend his remarks.)
Mr. Speaker, I yield 2 minutes to the gentleman from Texas (Mr. Edwards).
Mr. Speaker, I yield myself such time as I may consume.
Let me just point out to my friend from Connecticut that the transfer authority will have no impact on her State since her State's obligated all of their TANF funds.
Let me point out to my friend from Missouri (Mr. Blunt), if we want to do something for the military, the bill is sitting at the desk from the other body. We could take it up and get it done before we leave here this afternoon.
Mr. Speaker, I am pleased to yield 2\1/2\ minutes to the gentleman from Massachusetts (Mr. Tierney).
Mr. Speaker, I yield myself such time as I may consume.
I am curious why my friend from California points out that the Social Services Block Grant is not part of this legislation, even though all the faith-based nonprofit groups say it is very important to them, why the underlying bill provides transfer authority to the Social Services Block Grant from TANF if it is not relevant to this legislation. Maybe the gentleman from California will try to answer that.
Mr. Speaker, I yield 2\1/2\ minutes to the gentlewoman from Oregon (Ms. Hooley).
Mr. Speaker, may I inquire as to the time that remains?
Mr. Speaker, I reserve the balance of our time.
Mr. Speaker, I yield 3 minutes to the gentleman from Texas (Mr. Doggett).
Mr. Speaker, I yield 1\1/2\ minutes to the gentleman from Texas (Mr. Edwards).
Mr. Speaker, I yield myself the balance of my time.
Mr. Speaker, in closing, first let me reiterate what I said earlier. I support the underlying bill. I think the gentleman from Missouri (Mr. Blunt) and the gentleman from Tennessee (Mr. Ford) have done an excellent job in bringing forth an excellent bill, and I compliment them for that.
I noticed that many of the speakers on the opposition side of my amendment were speaking in support of the underlying bill which I support and which is incorporated in the amendment that I offer. I want to make it clear if Members support the underlying bill, they can certainly support this amendment, as the gentleman from Tennessee (Mr. Ford) supports this amendment.
So let me deal with the points which have been made in opposition to this amendment. I hope Members will take this into consideration when voting on the amendment.
First, the issue of relevancy has been waged as to why the social services block grant is included in this underlying bill. As pointed out, the underlying bill includes the TANF legislation giving authorization for the transfer of social services block grants. If it is relevant for the body of the bill, it is certainly relevant for our amendment.
Secondly, if we ask the charitable groups as to what will help them the most in carrying out the social functions that we want them to do, they all support the increasing of the social services block grant. The next issue which has been raised is do the States really need this and are the funds really necessary? After all, we have TANF reserves.
As I pointed out, the States are spending more every year in TANF funds than they are receiving from the Federal Government. They are running deficits right now.
In regards to the multiyear authorization, almost all those funds have been committed. If you look at the deficits our States are currently confronting in their budgets, it is just intuitive that we know they need the money. Lastly, this was a commitment we made when we passed welfare reform, that we would restore the social services block grant funds in 2003. Congress should live up to its commitment. They should adopt that amendment.
Then I hear criticisms about the offset. I hear that it is going to be hard to enforce. It is our responsibility to clarify the law. Currently it is being implemented by the court on a case-by-case basis. That is certainly not in the best interest of tax policy. It is our responsibility to do that. The way that we have drafted this in regards to effective dates, et cetera, is consistent with the prior policy of this body in passing tax legislation. We frequently note dates and that is exactly what the other body did. This is very consistent.
Then lastly, Mr. Speaker, I have heard just about every Member lament the fact that we are adding to the national debt and we have to do something about it, that we have to exercise fiscal restraint. When are we going to do it? Here is an easy one, my colleagues. This is an easy one. Closing a loophole that if you ask any tax accountant or tax attorney, they will tell you it is the right thing to do. Shelters do not help our economy. That is why the courts are taking it on when we should be taking it on and that is why the other body passed it in their legislation. It is time for us to stand up to our responsibility, to do the right thing. This is a bipartisan bill. Both of these recommendations have been brought forward with bipartisan support, both the increase in the social services block grant and the funding mechanism. It passed the other body by a vote of 95 to 5.
The last point I make, Mr. Speaker, is that we have a lot of work to do between now and adjournment. The more work we put in conference, the less likely it is going to come out of conference. Here is our chance to really make it likely that we could enact a bill that is going to help our charitable groups by moving closer to the other body consistent with the policy of this
body, consistent with both Democrats and Republicans. I urge my colleagues to continue the tradition of this legislation which has moved in a bipartisan manner and look at this amendment objectively. I hope you will vote with me. Vote your conscience. Vote in support of the Cardin amendment.
Mr. Speaker, I yield back the balance of my time.
Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.