Mr. President, I rise to speak on the fiscal year 2008 Transportation-HUD appropriations bill, which was passed by the Senate earlier today. I would like to begin by thanking Chairwoman Murray and Ranking Member Bond. Crafting legislation…
Mr. President, I rise to speak on the fiscal year 2008 Transportation-HUD appropriations bill, which was passed by the Senate earlier today.
I would like to begin by thanking Chairwoman Murray and Ranking Member Bond. Crafting legislation that seeks to meet the transportation and housing needs of our Nation is no easy feat, and I commend the hard work of the chairwoman, the ranking member, my colleagues on the subcommittee, and their staffs.
The legislation passed by the Senate provides nearly $105 billion for the upcoming fiscal year. Almost $66 billion is allocated to the Department of Transportation and nearly $39 billion is allocated to the Department of Housing and Urban Development.
I would like to speak on some of the transit and housing provisions in this legislation that fall under the Banking Committee's jurisdiction.
I note that although this bill provides an increase in transit funding over fiscal year 2007, it does not fund transit at the level authorized in the Safe, Accountable, Flexible, Efficient Transportation Equity Act: A Legacy for Users, SAFETEA-LU, the surface transportation authorization bill which Congress passed just 2 years ago. Safe and efficient transit systems provide significant benefits both to transit riders and to others in the community, including employers, property owners, and automobile drivers. In fact, the Texas Transportation Institute has estimated that transit saves Americans over $18 billion a year by reducing the amount of time we spend in traffic. Moreover, in this era of high gasoline prices, public transportation provides an additional benefit: according to economists Robert Shapiro and Kevin Hassett, public transportation saves more than 855 million gallons of gasoline a year, helping to reduce our dependence on foreign oil. Transit ridership is at its highest level in 40 years, and strong support for transit is essential in light of this increasing demand. I hope that this shortfall will be addressed by the conference committee.
I would like to thank Senators Murray and Bond, as well as my ranking member on the Banking Committee, Senator Shelby, for working with me to include an amendment related to the Federal Transit Administration's proposed rule implementing the New Starts program. Through the New Starts program, the Federal Government helps to fund major transit investments in communities around the country. The proposed rule fails to follow SAFETEA-LU in several material respects, and at the same time, introduces new concepts that were not authorized in SAFETEA-LU. This amendment makes clear that the FTA's failure to follow the law is unacceptable.
I am pleased that this bill provides additional funding, above the President's request, for many critical housing and community development programs. Unfortunately, the administration continues to request insufficient funds for these programs, and, in fact, each year has asked Congress to cut programs that assist our Nation's most vulnerable--children, seniors, and those with disabilities. Each year, we attempt to restore these cuts, and this year is no exception. Chairwoman Murray, and Ranking Member Bond, strong supporters of these programs, have, once again, successfully restored most of the cuts, helping to ensure that low-income families will have safe, decent and affordable housing in strong communities.
The housing programs funded in this bill assist millions of families around our country. Without housing assistance, many families would lack the stability to find and retain employment, and many children would be unable to adequately perform in school because of multiple moves or health problems resulting from inadequate housing, including asthma, poor nutrition and lead poisoning.
The wages of working families have not kept pace with housing costs. On average, a family in our country must earn $16.31 per hour at a full-time job in order to afford a modest 2-bedroom apartment without foregoing other basic needs. This amount is three times the minimum wage. In my home State of Connecticut, the wage needed to afford a modest 2-bedroom apartment is almost 4 times the minimum wage. This significant gap between the wages of low-income earners and housing costs makes evident that housing assistance is necessary for many working Americans.
This bill restores funding to the public housing program, which houses over 1.2 million of our Nation's lowest-income families. The public housing program has been targeted by this administration for deep cuts each year, and has lost hundreds of millions of dollars over the last 7 years. This year, the administration sought cuts to public housing funding of almost $500 million. The bill before us restores these cuts, increasing funding for the Public Housing Capital Fund by $61 million, the Operating Fund by $336 million, and restoring funding for the successful Hope VI program. Even these levels of funding are lower than what is realistically needed by public housing agencies to operate all of their units, but we are pleased to see these increases.
The bill we passed also increases funding for the Section 8 housing voucher program to ensure that all families currently in the program can retain housing. In addition, the bill provides funding for vouchers for veterans to make sure that American veterans have access to stable and affordable housing. It is a national disgrace that veterans, who have defended our country, are unable to access housing assistance in their times of need, and I strongly support the efforts of Senators Murray and Bond to address this critical failure.
The Section 8 housing voucher program assists over 2 million families in affording rents in the private housing market. While the appropriators have done an exceptional job at protecting this program from budget cuts, a combination of legislative language and administrative changes have altered the funding formula in the Section 8 program numerous times over the last several years, leaving housing agencies without assurance that all of their units will be funded. I applaud Senators Murray and Bond for including language in this bill retaining the Section 8 formula that was put in place last year--a formula that allocates funding in a reasonable way, and provides funding stability for housing agencies and the families they serve. I urge the chairwoman and ranking member to retain this formula throughout the whole appropriations process.
This bill also ensures that programs to house seniors, people with disabilities and people living with HIV/AIDS are fully funded. The President, astonishingly, requested a cut of $160 million to the senior housing program, and a cut of $112 million to the housing program for people with disabilities. I want to thank Chairwoman Murray and Ranking Member Bond for restoring these significant and shortsighted cuts.
The bill we passed also seeks to increase funding for CDBG and the HOME program, two flexible sources of funds that communities use to house families across the income spectrum, provide rental assistance, rehabilitate housing and public facilities, provide and sustain homeownership opportunities, and restore and strengthen communities. In this bill, CDBG funding has been increased by $288 million over last year's funding level, and HOME has been increased by over $200 million, including an additional $100 million for housing counseling, specifically for counseling to prevent foreclosures, an increase I sought and strongly support.
This $100 million is critical to helping build the counseling infrastructure that can help tens of thousands of American families threatened with default and foreclosure save their homes, preserve their home equity, and maintain their dignity. As many of my colleagues know, the subprime mortgage market has been rife with abusive and predatory lending practices that have led to millions of Americans being trapped in adjustable rate mortgages, ARMs, with mortgage payments that will soon explode to unaffordable levels. During hearings that I chaired in the Senate Banking, Housing, and Urban Affairs Committee, senior executives from some of the largest subprime lenders acknowledged that they knew, when their companies funded these loans, that many of these borrowers could not afford these payments after the interest rates reset and payments increased. Yet, they made the loans and collected the fees. In most cases, the lenders sold these loans off to the secondary market. Today, these homeowners, and their communities, are paying a steep price in lost equity and falling home prices.
In fact, the Center for Responsible Lending, CRL, released a report late last year predicting that 2.2 million families would lose their homes at a cost of $164 billion in hard-earned home equity. When this report was released, we heard howls of protest from many analysts and industry officials; yet, as the weeks and months go by, and each
new round of foreclosure statistics are released, the CRL number looks more and more accurate.
The additional $100 million in counseling funds will help organizations with the experience and expertise to work with lenders and servicers to reach out to borrowers early--prior to loan resets, if possible--to try to modify loans to make them affordable for the long- term. This effort is crucial--one industry study indicates that over 6 million subprime borrowers, with over $1.5 trillion in home loans, will face mortgage loan resets in 2007 and beyond. Given the fact that we are already experiencing historically high foreclosure rates, we need to take decisive action to keep hard-working Americans in their homes.
While this bill helps to ensure that low- and moderate-income families can afford decent and safe housing, I am concerned with the level of funding provided for Section 8 project-based assistance. This bill provides the level of funding requested by the administration; however, HUD recently alerted us that this is well below what is needed to pay for all project-based assistance contracts. Without adequate funding, property owners in the program will not be able to continue providing affordable housing to low-income families. I have called on the administration to immediately provide Congress with an estimate of the amount of funds needed to fully fund these contracts for housing assistance, and yet we have not received this vital information. If there is a shortfall in this program, we will have to address this problem.
In closing, I would like mention a few additional initiatives funded under this bill. I am pleased that Amtrak has received almost $1.4 billion in this legislation--funding that will ensure the continuation of passenger rail service in this country. I am also pleased that Senators Murray and Bond agreed to an amendment I cosponsored with Senator Clinton regarding the redesigning of airspace over greater New York. Over the past several months, I have voiced concern over the way the Federal Aviation Administration has proposed redesigning airspace in the Northeast. While I am supportive of the idea to reduce the air traffic congestion that currently plagues our country, I believe the FAA has an obligation to submit redesign proposals that are transparent and allow for full and informed public comment. The amendment adopted in this legislation takes a step forward in that direction. Finally, I am pleased that this bill contains vital resources for many important transportation and economic revitalization initiatives in my home state. It is my hope this funding is retained as the Senate proceeds to a conference with the other Chamber.