Floor Statements

I thank the gentleman for yielding.

Mr. Speaker, I rise today in support of this rule and in strong support of the underlying bill.

Mr. Speaker, we are not going to fix our economy until we fix the problem in the housing market, which currently has risen to the level of a national crisis. In my home State of Rhode Island, we've been deeply affected by the downturn in the housing market. Our foreclosure rate last year was ranked 10th worst in the Nation, according to the Mortgage Bankers Association. And to make matters worse, we currently have the second highest unemployment rate in the country at 10 percent.

A lack of action on the housing issue is going to lead to even more dire consequences.

Now, in order for the economy to recover, it's evident that action must be taken to prevent foreclosures, help more families preserve home ownership and stabilize home prices. H.R. 1106, the Helping Families Save Their Homes Act, provides the resources that homeowners and lenders will need to guide them through this crisis.

We also must ensure that the appropriate measures are in place to prevent this kind of crisis from ever happening again. This bill goes a long way towards fixing our housing programs.

And I want to thank our colleagues, especially Chairman Conyers and Chairman Frank, for their outstanding and tireless efforts on this measure.

Mr. Speaker, I rise in support of the Conference Report to H.R. 1, the American Recovery and Reinvestment Act, which addresses the unprecedented economic crisis we are currently facing. This measure will put our economy back on track and will also transform our economy for the 21st Century through much needed investments in our health care system, infrastructure, education, and energy independence, while saving and creating millions of jobs during the next two years.

We are facing dire economic times. Every week, we are faced with new reports on job losses across our country. In my home state of Rhode Island, we have the country's second highest unemployment rate at ten percent and last December, we were ranked sixth nationally in foreclosure rates. These harsh realities have made it increasingly clear that our economy will face an even sharper downturn if we do not act soon.

The compromise between the House, Senate and White House is not perfect, but it contains the right formula of spending and tax relief to stimulate our economy and increase new job opportunities. With that in mind, I support taking action to rebuild our nation's economy and put Rhode Island families first. H.R. 1 will appropriate spending for transportation and infrastructure upgrades and construction, health care programs, education assistance, housing assistance and energy efficiency upgrades, and includes personal and business tax breaks, tax provisions intended to assist state and local governments, and energy- related tax incentives for a total of $787 billion to be expended over Fiscal Years 2009 and 2010. This measure helps those hit hardest by the economic downturn by extending unemployment benefits, providing job training to get people back to work quickly, increasing food stamp benefits, and extending health benefits.

The recovery plan provides funding to modernize our crumbling roads and bridges, increase transit and rail funding to reduce traffic congestion and gas consumption, and invest in clean water and other environmental restoration projects. These investments will immediately create jobs in my state, as projects will only receive funding if they are ``ready to go'' within 90 days of the enactment of this bill. This legislation also includes additional infrastructure funding that will improve our national security by modernizing our electric grid, upgrading our airport, port, transit and rail security, and updating Department of Defense facilities.

One of the best ways to grow our economy is by investing in our future workforce. The inclusion of robust education initiatives that will build 21st Century classrooms, labs and libraries is also very important to me as we prepare the next generation of workers to support and strengthen our economy. I am pleased that funding to modernize, renovate and repair school buildings is included in the final language. It also contains funding for Title I programs, which serve disadvantaged children, and IDEA, which serves disabled children, ensuring that all children, regardless of where they live or their disability, receive a quality and equal education. Moreover, this level of funding for IDEA increases the Federal share

of special education services to its highest level ever and brings much needed relief to school systems. H.R. 1 also provides $15.6 billion for Pell grants, and it is estimated that Rhode Island will receive $97.5 million in aid for 28,217 recipients for an average award for the academic year 2009-10 of $3,456. Investing in our children's education not only has long-term benefits to our economy, but it also delivers on our nation's promise to ensure that all individuals have an equal opportunity to succeed.

Investments in American health care also represent a vital component of our nation's economic recovery and long term fiscal sustainability. This package contains several provisions that will stimulate job growth and improve health care quality and efficiency through $10 billion investments in biomedical research and $19 billion for the further development and implementation of health information technology.

This bill bolsters crucial safety net programs that provide invaluable health and social services to our nation's low-income and disabled citizens with the inclusion of $87 billion in enhanced funding for state Medicaid programs that have been stretched to the breaking point under increased unemployment and skyrocketing health costs. This package also includes a provision to assist recently unemployed individuals and their families by helping them maintain their health coverage through a 65% subsidy for health insurance premiums under COBRA for up to nine months.

One of the greatest challenges we face with this effort is ensuring that we do not repeat the mistakes of the past. This bill makes great strides by investing in the transformation of our national energy policy, which will lead to greater technological advancements in renewable technologies, job creation, and energy independence. Now is the time to make the commitment to our children and our grandchildren that we will leave a safer, cleaner, and healthier environment than we have now. As a co-founder of the Sustainable Energy and Environment Coalition, I fought for several provisions in H.R. 1 that promote energy efficiency and renewable energy production and development, including tax provisions for families and businesses, in addition to funding that will drive the creation of new, ``green-collar'' jobs. More importantly than tax incentives alone, this measure sets forth a long-term energy policy that puts our nation on the path towards energy independence.

Individuals and families will also receive relief through the ``Making work pay'' tax credit, which will provide up to $400 for an individual or $800 for married couples filing jointly. Parents will also benefit from an increase in the earned income tax credit for families with three or more children and the bill allows additional low-income families to receive the child tax credit. The measure will also provide a tax credit up to $8,000 for first time home buyers if they purchase a home between January 1st, 2009 and December 31st, 2009, injecting a much needed financial incentive into the housing market.

I also urge my colleagues to join me in my support for H.R. 1 because it includes unprecedented accountability and strong oversight by creating the Recovery Act Accountability and Transparency Board, which will coordinate and conduct oversight of federal spending under the bill. A public website will also contain the board's reports, show exactly how funds are spent and will list announcements of contract and grant competitions and awards.

Mr. Speaker, it is important to understand that this funding is not a silver bullet, but that our economy will continue to decline without this immediate action. The Recovery package will slow our downward economic trend and allow us to regain our footing as we begin to make much-needed long term investments to transform our economy for the 21st Century. American prosperity depends on individual economic security. It is only when Americans do not have to worry about losing their job, keeping their home or paying their bills that our economy will truly flourish. I am committed to improving the economic outlook for the millions who are struggling, and I will continue working with my colleagues in Congress on this vital and urgent goal.

Mr. Chair, I rise in support of H.R. 1, the American Recovery and Reinvestment Act, which will save and create millions of jobs across our country, jumpstart our economy and transform it to meet the needs of the 21st century by making our nation more globally competitive and energy independent.

We are facing dire economic times. Every week, we are faced with new reports on job losses across our country. In my home state of Rhode Island, we have the country's second highest unemployment rate at ten percent and last December, we were ranked sixth nationally in foreclosure rates. These harsh realities have made it increasingly clear that our economy will face an even sharper downturn if we do not act soon. With that in mind, I support taking action to rebuild our nation's economy.

H.R. 1 will appropriate $544 billion for transportation and infrastructure upgrades and construction, health care programs, education assistance, housing assistance and energy efficiency upgrades, and includes $275 billion in personal and business tax breaks for a total of $819 billion to be expended over Fiscal Years 2009 and 2010. This measure helps those hit hardest by the economic downturn by extending unemployment benefits, providing job training to get people back to work quickly, increasing food stamp benefits, and extending health benefits for those who lose their job.

This measure provides $90 billion to modernize our crumbling roads and bridges, increase transit and rail funding to reduce traffic congestion and gas consumption, and invest in clean water and other environmental restoration projects. It is estimated that Rhode Island will receive $154 million for highways and bridges and $39 million for the Clean Water State Revolving Fund, which will significantly raise and almost double our state's budget for these programs. These projects will immediately create jobs in my state, as projects will only receive funding if they are ``ready to go'' within 90 days of the enactment of this bill.

This measure also includes education initiatives that will build 21st century classrooms, labs and libraries through a new program that will modernize, renovate and repair school buildings. It is estimated that Rhode Island will receive $48 million for Title I programs, which serve disadvantaged children, and $48 million for IDEA Funds. H.R. 1 also provides $15.6 billion for Pell grants, and it is estimated that Rhode Island will receive $97.5 million in aid for 28,217 recipients for an average award for the academic year 2009-10 of $3,456. Investing in our children's education not only has long-term benefits to our economy, but it also delivers on our nation's promise to ensure that all individuals have an equal opportunity to succeed.

I have strongly advocated for a comprehensive energy plan to lower costs, create jobs and improve our environment. H.R. 1 will not only double renewable energy production, but I am especially pleased that funding is included to build the infrastructure to transmit renewable energy to homes throughout our nation. The bill also promotes a Smart Grid Investment Program to modernize our electricity grid to meet the needs of our growing and evolving energy system. While Congress supports an efficient and modern system of power generation, the bill also provides necessary credits to individuals to make their homes more energy efficient through weatherization programs and with credits to purchase energy efficient appliances.

This measure includes individual tax relief, including the ``Making work pay'' tax credit, which will provide up to $500 for an individual or $1,000 for married couples filing jointly. Parents will also benefit from an increase in the earned income tax credit for families with three or more children and the bill allows for additional low-income families to receive the child tax credit. It will also provide a tax credit up to $7500 for first time home buyers if they purchase a home between April 8th, 2008 and July 1st, 2009, injecting a much needed incentive into the housing market.

I also supported H.R. 1 because it includes unprecedented accountability and strong oversight by creating the Recovery Act Accountability and Transparency Board, which will coordinate and conduct oversight of federal spending under the bill. A website with the board's reports will be placed on a website, which will also show how funds are spent and list announcements of contract and grant competitions and awards.

Mr. Chair, it is important to understand that this funding is not a silver bullet, but that our economy will continue to decline without this immediate action. The Recovery package will begin to slow our downward economic trend and allow us to regain our footing as we begin to make much-needed long term investments to transform our economy for the 21st century. American prosperity depends on individual economic security. It is only when Americans do not have to worry about losing their job, keeping their home or paying their bills that our economy will truly flourish. I am committed to improving the economic outlook for the millions who are struggling, and I will continue working with my colleagues in Congress on this vital and urgent goal.

Mr. Chair, I rise in support of H.R. 384, the TARP Reform and Accountability Act, which will ensure that TARP funding will be spent responsibly and transparently in an effort to get the economy back on track.

In order to stabilize our economy and get credit flowing again to families and small businesses, we need to fundamentally change the practices of the Troubled Assets Relief Program before the remaining $350 billion streams into the marketplace. Unfortunately, the Bush Administration mismanaged the financial rescue funds approved in 2008 and failed to follow congressional intent when it came to executing the Emergency Economic Stabilization Act. The Bush administration failed to address the foreclosures as the source of this crisis, and it did not effectively use TARP funds to restore our economy's flow of credit. Along with my constituents, I am deeply disappointed that the past administration did not adequately track how taxpayer money was spent to ensure that banks were using it for the intended purposes.

Congress must only move forward with the release of the remaining TARP funds if they are confident that these failures will be remedied. H.R. 384 amends the Troubled Assets Relief Program provisions of the Emergency Economic Stabilization Act by strengthening accountability, closing loopholes, and increasing transparency. This measure sets up a blueprint to carefully track and monitor all the TARP funds, including previous and future allocations. It requires Treasury to provide a minimum of $40 billion on foreclosure mitigation to help homeowners address the mortgage crisis. H.R. 384 limits executive bonuses for firms participating in TARP and assists cities and other tax-exempt issuers in finding investors for their bonds. Under the direction of the Obama administration, I believe the TARP funding will adhere to these new transparency and accountability provisions, while also working to ensure that our taxpayers' needs are the top priority.

During this difficult economic crisis, we need to stand up for Rhode Island families looking to secure student loans, car loans, home loans or mortgage refinancing. We need to make sure that small business owners have access to the capital they need to make payroll or invest in their companies. And we need to stabilize the pensions and savings that our retirees are counting on. I believe this recovery plan is essential for Rhode Island families. H.R. 384 will bring us closer to the original intent of TARP--to help those most in need during these difficult times.

I want to thank my friend, Chairman Frank, for his tireless work on this issue, and I encourage my colleagues to vote for this bill.

Madam Speaker, I rise today in strong support of H.R. 2, the Children's Health Insurance Program Reauthorization Act. This legislation represents a crucial and long overdue investment in the health and wellbeing of our nation's most valuable assets--our children.

Since 1997, the State Children's Health Insurance Program (SCHIP) has successfully provided health coverage to millions of low income children across the country who would not otherwise be able to access these services. I have been especially proud of the Rite Care program in my home state of Rhode Island, which covered approximately 24,000 children last year under both the SCHIP and Medicaid programs. However, too many children and their families remain without access to proper health services. We must reaffirm our commitment at the federal level to ensure states have the means to address the health care needs of our constituents, particularly in the midst of an economic crisis that has resulted in dramatic increases in unemployment levels.

H.R. 2 will ensure health coverage for a total of 11 million American children by reauthorizing SCHIP for four and a half years and extending coverage to an additional 4 million uninsured children who are currently eligible for, but not enrolled in, SCHIP and Medicaid. Two- thirds of uninsured children are eligible for coverage through SCHIP and Medicaid, but better outreach and adequate funding are needed to identify and enroll them. This bill provides $100 million in grants for new outreach activities to states, local governments, schools, community-based organizations and other safety-net providers. It also improves SCHIP by ensuring dental coverage for children, mental health services on par with medical and surgical benefits, as well as improved access to private coverage options through premium assistance subsidies.

Finally, H.R. 2 reauthorizes and improves SCHIP without adding to our ballooning federal deficit. Since the cost of the bill is completely offset, it will allow us to make a much-needed investment in the health of our children without requiring them to pay for it in the future.

As many of my colleagues know, universal access to health care has been a top priority of mine throughout my tenure in Congress. I can think of no better place to start than by guaranteeing that children across the country receive the health care services they both require and deserve. I, therefore, urge all of my colleagues to support passage of this measure.

Madam Speaker, I submit the following:

House of Representatves,

Washington, DC, January 6, 2009.

Hon. Nancy Pelosi,

Speaker, House of Representatives,

Capitol, Washington, DC.

Dear Madam Speaker: This letter is to advise you that,

effective today, I am taking a leave of absence from the

Homeland Security Committee until my tenure on the House

Permanent Select Committee on Intelligence is completed. I

understand that I will retain my seniority on the Homeland

Security Committee for the duration of my leave.

Thank you for your assistance with this matter.

Sincerely,

James R. Langevin,

Member of Congress.

Madam Speaker, I rise in strong support of H.R. 11, the Lilly Ledbetter Fair Pay Act. As an original cosponsor of this bill, I am pleased to see this legislation on the House floor today.

H.R. 11 would correct an injustice and break down barriers to equal pay. From 1979 until 1998, Lilly Ledbetter worked as a supervisor for the Goodyear Tire & Rubber Company. Although Ledbetter initially received a salary similar to the salaries paid to her male colleagues, a pay disparity developed over time. By 1997, the pay disparity between Ledbetter and her 15 male counterparts had widened considerably, to the point that Ledbetter was paid $3,727 per month while the lowest paid male colleague received $4,286 per month and the highest-paid male colleague received $5,236 per month. An anonymous note informed Ms. Ledbetter of this discrimination, which had been going on for years, and she immediately filed a complaint in 1998. A jury found in her favor, but, in a misguided Supreme Court decision, the jury's verdict was overturned. According to the Supreme Court, her complaint was too late.

This decision makes it more difficult for employees to sue for pay discrimination under Title VII, which was not the intent of Congress when the title was written into law. H.R. 11 would clarify that the statute of limitations for suing employers for pay discrimination begins each time they issue a paycheck and is not limited to the original discriminatory action. This change would be applicable not only to Title VII of the Civil Rights Act, but also to the Age Discrimination in Employment Act, the Rehabilitation Act of 1973, and the Americans with Disabilities Act.

Madam Speaker, I urge my colleagues to support this bill to protect women like Lilly Ledbetter from taking their case for equal pay all the way to the Supreme Court, to support single mothers who may worry whether or not

they are being treated fairly by their employers while they provide for their children, and to ensure that daughters entering college can reach their full potential when they graduate.

Mr. Speaker, I rise in strong support of H.R. 12, the Paycheck Fairness Act. As an original cosponsor of this bill, as well as a cosponsor in previous Congressional sessions, I am pleased to see this legislation on the House floor today.

H.R. 12 would narrow the wage gap between men and women and strengthen the Equal Pay Act, which makes it unlawful for an employer to pay unequal wages to men and

women that have similar jobs within the same establishment. The Paycheck Fairness Act would allow women to sue for punitive damages, as well as compensatory damages. Currently, women who seek compensation for unequal pay can only recover back pay, or in some cases, double back pay. While this bill would increase penalties for employers who pay different wages to men and women for equal work, it also provides incentives such as training programs for employers to eliminate pay disparities and grant programs to help strengthen the negotiation skills of girls and women.

Some may argue that these changes are not necessary, but the numbers speak for themselves. Despite greatly increased commitment to the labor force over the past 45 years, women working full-time make 77 cents for every dollar earned by a man--less than a 20 percent increase since the Equal Pay Act was signed into law in 1963. Even more troublesome, African-American women earn 66 cents to the dollar and Latina women earn 55 cents to the dollar. According to a Census Bureau study, male high school graduates earned $13,000 more than female high school graduates in 2006. Women with a bachelor's degree employed year-round earned $53,201, while similarly educated men earned an average of $76,749. This same study also noted that the pay difference between men and women grows wider as they age.

Mr. Speaker, I urge my colleagues to support this bill to protect women like Lilly Ledbetter from taking their case for equal pay all the way to the Supreme Court, to support single mothers who may worry whether or not they are being treated fairly by their employers while they provide for their children, and to ensure that daughters entering college can reach their full potential when they graduate.

Madam Speaker, I thank my colleague for yielding, and I am honored to join with him today in paying tribute to our State's former senior Senator, Senator Claiborne Pell, who passed away on the 1st of this year. He was an incredible public servant, and someone who I was proud to call a friend and a mentor. He was one of Rhode Island's greatest statesmen and gentlemen, as I said, who passed away on the first day of 2009.

Born on November 22, 1918 into a prominent and wealthy family, Senator Pell was better known as a champion for the common man and also the ``Father of the Pell Grant Program.'' After receiving a degree from Princeton University, he served in the United States Coast Guard during World War II and later traveled the world as a Foreign Service Officer of the State Department. In 1960, he was elected to his first of six terms as a United States Senator from Rhode Island. After retiring in 1997, he became our State's longest-serving Senator.

Diagnosed with Parkinson's Disease in 1994, he never let his physical condition diminish his spirit and he remained active in the Rhode Island community and the Democratic Party. In Rhode Island, the Pell name is legendary in politics and synonymous with the best attributes of public service, and his legacy endures.

The esteemed Senator once stated, ``The strength of the United States is not the gold at Fort Knox or the weapons of mass destruction that we have, but the sum total of the education and the character of our people.'' Believing that education was the great equalizer, he created legislation that passed in 1972 establishing the Basic Educational Opportunity Grants--better known now as Pell Grants--that provide financial assistance to students who may not otherwise be able to attend college. It is estimated that a remarkable 54 million students have benefited from these grants.

Due to his love of the arts, he also authored the legislation, as my colleague, Congressman Kennedy, mentioned, creating the National Endowment for the Arts and the National Endowment for the Humanities. He helped shape our country's foreign policy and believed strongly in the power of diplomacy. He stood up to defend rights for all Americans, regardless of race, class or sexual orientation.

Knowing him for more than two decades, I considered Senator Pell a friend and a mentor and had the opportunity of interning in his Washington, DC office during my studies at Rhode Island College. I found it to be one of the most rewarding experiences of my life and the beginning of a career path that led me here to Congress as a representative of Rhode Island's Second Congressional District.

As I began my own career in government, Senator Pell was always there for me, offering advice and support.

In continuing my tribute to Senator Pell, Madam Speaker, Senator Pell was and always will be a role model as I work to serve the people of Rhode Island just as he did, with courage and integrity.

This past Monday, Senator Pell was remembered by his family, colleagues from the Senate, President Clinton, Vice President-elect Biden, and many others. It was a fitting tribute to his years of public service and his life-long vision for our country.

Madam Speaker, it is an understatement to say that his presence will be forever missed, but his enduring legacy will live on in his many accomplishments that have enhanced our country greatly, and especially the past, present and future students who have achieved a higher education because of Pell Grants. And it will live on in the people of Rhode Island, who have benefited greatly from his life's work.

My thoughts and prayers are with his entire family, especially his beloved wife of 64 years, Nuala Pell, during this very difficult time.

I join with my friend and colleague, Congressman Kennedy, to say that Senator Pell had a tremendous impact on our careers. And again, we extend both our sincerest condolences to the entire Pell family.

Mr. Speaker, I rise in support of H.R. 7321, the Auto Industry Financing and Restructuring Act. It is clear that the auto industry itself carries a great deal of responsibility for the crisis it faces today, due to an inability or unwillingness to take the steps necessary to compete in a 21st century market. Nonetheless, I recognize the urgency of extending federal loans to Detroit's automakers, as their collapse could trigger massive job losses and ripple effects throughout a wide range of industries. One in ten American jobs is linked to the domestic auto industry, and it is estimated that as many as 10,000 jobs could be affected by its failure in my home state of Rhode Island.

To win my support, it was imperative that this bill place strict conditions and requirements on the automakers receiving assistance, and I believe it meets that test. These companies will have to submit a final and acceptable long-term restructuring plan by March 31, 2009, and if adequate progress has not been made by February 15th, 2009 on efforts to stabilize the auto industry, the companies will be forced to repay their loan. Their restructuring plans must show how the companies will achieve long-term viability, international competitiveness and energy efficiency. Furthermore, upon enactment of this bill, the administration must immediately appoint a ``car czar'' to monitor the progress of these plans. This designee will also have veto power over company expenditures of more than $100 million. H.R. 7321 also demands accountability to taxpayers by banning golden parachutes to company executives, bonuses for the 25 most highly paid employees, and corporate jets. Finally, a company may not pay dividends to shareholders over the duration of the loan.

Mr. Speaker, our domestic car manufacturers have made some unwise business decisions in the past. However, the fall of the U.S. auto industry would be a devastating blow to our already fragile economy, impacting millions of workers and countless businesses, large and small. Today, we have the opportunity to give these companies a chance for survival and to point them in the right direction for our future needs as a country, which includes a strong manufacturing base for fuel-efficient vehicles. I encourage my colleagues to vote for H.R. 7321 and in support of the future of our country's auto industry.

Madam Speaker, on October 3, 2008, I was unavoidably detained and unable to be in the Chamber for a rollcall vote. Had I been present, I would have voted ``yea'' on rollcall No. 679, Ordering the Previous Question on H. Res. 1525.

Madam Speaker, we are meeting today to again consider the Emergency Economic Stabilization Act--a critical piece of legislation, but one that none of us look forward to voting on. During this difficult economic crisis, I am proud of this Congress for coming together at a crucial moment to reach a bipartisan compromise to rescue not only our financial markets but our entire economy. However, no one is celebrating today about the tough decisions that had to be made.

Over the last two weeks hundreds of Rhode Islanders have contacted my office expressing serious concerns about the proposal and a firm belief that the taxpayers' needs must be a priority. I share their anger and frustration that for far too long, many on Wall Street were given carte blanche to make increasingly risky investments--investments which, in some cases, the firms themselves didn't even fully understand. There is plenty of blame to go around, from Wall Street and mortgage lenders to government regulators and Congress. Unfortunately, the actions of these firms do not take place in a bubble: they are inextricably linked to the every day transactions of every day American families. Our economy is in dire shape and drastic action is needed. If we do not act now, a domino effect could easily trigger major job losses and a significant period of economic downturn with negative consequences not just on Wall Street, but on every street in our country.

This crisis originated with faulty lending practices and the creation of subprime mortgages made to people who often could not afford to pay them back. These subprime mortgages were then pooled together into packages that were transformed into highly-rated securities purchased around the world. The eventual collapse of the subprime mortgage market infected the prime mortgage market, which in turn poisoned the entire financial system. In response, Treasury Secretary Hank Paulson proposed a plan under which the Federal Government would buy--at a deep discount--so-called ``toxic'' assets, which currently no one is willing to buy. These assets include home mortgages which have been bundled into such complex packages that there is great uncertainty about their underlying value. Secretary Paulson considers these purchases to be investments by the federal government, which could return a substantial proportion of their value to American taxpayers once the market has settle down.

I recognize the urgency of the situation and understand that Secretary Paulson and all responsible government leaders are trying to ward off even worse outcomes. This year, we have seen the fall of some of the largest investment banks in the world--Bear Stearns, Lehman Brothers, and Merrill Lynch--and the last two standing--Morgan Stanley and Goldman Sachs--last week chose to be switched over to commercial banks, seeking greater protection at the price of greater regulation. Meanwhile, the federal government loaned $85 billion to American International Group, Inc., AIG, the 18th largest company in the world, when it was unable to access credit for its daily operations. On September 26, we also saw the biggest bank failure in our country's history when Washington Mutual collapsed. One week later, Wachovia had been bought out by another bank. Even Bank of America recently decided it would no longer extend new lines of credit to McDonald's franchisees, which have been turning a profit for years and run a clean balance sheet.

When the credit market seizes up at the highest levels, it is not just a problem for Wall

Street. It quickly impacts all of us, making it harder for average families to secure car loans, home loans or mortgage refinancing. It means that small business owners can't access the quick capital they need to make payroll or invest in their companies. It impacts the student loan market, where more than 50 firms have abandoned or cut back their student loan programs. And it threatens the pensions and savings that our retirees are counting on. While no one wanted to be in this position, I do believe that passing this rescue plan is essential for Rhode Island families.

However, I have been vocal about my own concerns with the Administration's original proposal, and early on I outlined priorities that must be included in any bill I would be able to support. I am pleased that the legislation before us today is a vast improvement over the initial plan Secretary Paulson presented, and it contains significant protections for families across the country who had nothing to do with creating this crisis but are feeling its effects in many ways. First, this bill protects taxpayers by requiring strong Congressional oversight over expenditures under the plan; giving taxpayers a share of profits in participating companies; and requiring a President to ensure taxpayers are repaid in full, with Wall Street making up any difference. Furthermore, we have endured that CEOs do not benefit from risky behavior by severely limiting executive compensation and ``golden parachute'' packages for any firms that take advantage of the government assistance. Finally, the bill requires the government to implement a plan to reduce foreclosures as it buys troubled financial assets like mortgage backed securities.

At its core, H.R. 1424 authorizes $700 billion for the Treasury Department to buy distressed mortgage-backed securities, expiring on December 31, 2009. Of that total, $250 billion would be for immediate release, with another $100 billion upon a presidential certification of need. The final $350 billion could be made available if the president transmits a written report to Congress requesting the funds, and Congress would have the right to disapprove this last installment. Spending authority would be overseen by a new Financial Stability Oversight Board, which will review the Treasury Department's actions and its effects on the financial markets and the housing market, and by a special inspector general office to conduct and supervise audits and investigations of the actions taken under this bill. Treasury must also report to Congress 60 days after it begins using this authority, and every 30 days thereafter.

Furthermore, H.R. 1424 establishes a joint congressional oversight panel to review the current state of the financial markets and the regulatory system. This panel will submit a report on the current regulatory system and its effectiveness at overseeing the participants in the financial system and protecting consumers. This provision is critical, since going forward, we must ensure that our financial sector is no longer allowed to put ordinary Americans in danger by pursuing high-risk behavior with little to no oversight. We must investigate companies that took advantage of lenient regulation or possibly acted outside of federal regulations entirely. And we must learn from our mistakes, establishing new regulations and ensuring the laws already on the books are enforced.

Madam Speaker, in just the four days since the House defeated the original economic recovery bill, we have already seen clear signs of what awaits our country if we do not take action today. Within hours after that first vote, the Dow Jones Industrial Average lost nearly 800 points, its biggest point drop in history. The markets have remained shaky, threatening the financial holdings and retirement savings of millions of American families. Meanwhile, anxiety continues to rise in industries across the country, from agriculture to manufacturing. Countless businesses, small and large, are having trouble securing credit for everyday operations and they are terrified of what the future might hold. Car loans are becoming more expensive, mortgages more difficult to obtain. And on Monday, Wachovia limited the access of nearly 1,000 colleges and universities to their own funds invested with the bank.

These are troubling warning signals of the potential for real economic catastrophe if we do not come together as a Congress and show the real leadership on difficult issues that our constituents expect. This is not an easy vote for any of us, but I am convinced that it is the right one. I know it is not a perfect bill, but rarely is there a perfect solution to such a complex and troubling set of problems. I believe the revised measure before us today is somewhat improved over the original version, largely due to the inclusion of an increase in FDIC coverage for bank accounts from $100,000 to $250,000. Unfortunately, I am disappointed that the tax extenders legislation-- which I was happy to support when its costs were fully paid for--has been added to this bill without sufficient offsets. Nonetheless, I will again cast a vote in favor of this package because it is too important to fail again.

Madam Speaker, let me close by assuring my colleagues and my constituents that if I thought the bill before us today was nothing more than a hand-out to high-flying Wall Street investors who suddenly found themselves in trouble and decided they didn't like losing money, I would be the first in line to cast a no vote. Unfortunately, this problem is much bigger and much less selective about whom it might hurt. We need to take action, and we need to do it now. This legislation represents a good, bipartisan solution to a situation none of us wanted to find ourselves in. I want to thank speaker Pelosi, Chairman Frank and many other colleagues for their tireless work on this bill. I encourage all my colleagues to vote for this bill.

Madam Speaker, on the evening of September 28, 2008, I was unable to vote due to illness and missed three Rollcall Votes. Had I been present, I would have voted ``yea'' on Rollcall number 666, on ordering the previous question on H. Res. 1514; ``yea'' on Rollcall number 667, on agreeing to H. Res. 1514; and ``yea'' on Rollcall number 668, on passage of S. 2840.

Additionally, due to illness, I missed five Rollcall Votes on September 29, 2008. Had I been present, I would have voted ``yea'' on Rollcall 669, passage of S. 906; ``yea'' on Rollcall number 670, on ordering the previous question on H. Res. 1517; ``yea'' on Rollcall number 671 on agreeing to H. Res. 1517; ``yea'' on Rollcall number 672 on agreeing to H. Con. Res. 440; and ``nay'' on Rollcall number 673 on the motion to adjourn.

Madam Speaker, we're here today with the unenviable task of considering H.R. 3997, the Emergency Economic Stabilization Act. During this difficult economic crisis, I am proud of this Congress for coming together at a critical moment to reach a bipartisan compromise to rescue our financial markets and, indeed, our entire economy. However, no one is celebrating today about the tough decisions that had to be made.

Over the last week hundreds of Rhode Islanders have contacted my office expressing serious concerns about the proposal and a firm belief that the taxpayers' needs must be a priority. I share their anger and frustration that for far too long, many on Wall Street were given carte blanche to make increasingly risky investments--investments which, in some cases, the firms themselves didn't even fully understand. There is plenty of blame to go around, from Wall Street to government regulators to Congress. Unfortunately, the actions of these firms do not take place in a bubble: they are inextricably linked to the everyday transactions of everyday American families. Our economy is in dire shape and drastic action is needed. If we do not act now, a domino effect could easily trigger major job losses and a significant period of economic downturn with negative consequences not just on Wall Street, but on every street in our country.

This crisis originated with faulty lending practices and the creation of subprime mortgages made to people who often could not afford to pay them back. These subprime mortgages were then pooled together into packages that were transformed into highly rated securities purchased around the world. The eventual collapse of the subprime mortgage market then infected the prime mortgage market, which in turn poisoned the entire financial system. In response, Treasury Secretary Hank Paulson proposed a plan under which the Federal Government would buy--at a deep discount--so-called ``toxic'' assets, which currently no one is willing to buy. These assets include home mortgages which have been bundled into such complex packages that there is great uncertainty about their underlying value. Secretary Paulson considers these purchases to be investments by the Federal Government, which could return a substantial proportion of their value to American taxpayers once the market has settled down.

I recognize the urgency of the situation and understand that Secretary Paulson and all responsible government leaders are trying to ward off even worse outcomes. This year, we have seen the fall of some of the largest investment banks in the world--Bear Stearns, Lehman Brothers, and Merrill Lynch--and the last two standing--Morgan Stanley and Goldman Sachs--last week chose to be switched over to commercial banks, seeking greater protection at the price of greater regulation. Meanwhile, the Federal Government loaned $85 billion to American Insurance Group, Inc. (AIG), the 18th largest company in the world, when it was unable to access credit for its daily operations. On September 26, we also saw the biggest bank failure of our country's history when Washington Mutual collapsed. Just this morning, Wachovia was bought out

by another bank. Even Bank of America recently decided it would no longer extend new lines of credit to McDonald's franchisees, which have been turning a profit for years and run a clean balance sheet.

When the credit market seizes up at the highest levels, it is not just a problem for Wall Street. It quickly impacts all of us, making it harder for average families to secure car loans, home loans or mortgage refinancing. It means that small business owners can't access the quick capital they need to make payroll or invest in their companies. It impacts the student loan market, where more than 50 firms have abandoned or cut back their student loan programs. And it threatens the pensions and savings that our retirees are counting on. While no one wanted to be in this position, I do believe that passing this rescue plan is essential for Rhode Island families.

However, I have been vocal about my own concerns with the administration's original proposal, and I have outlined priorities that must be included in any bill I would be able to support. I am pleased that the legislation before us today is a vast improvement over the initial plan Secretary Paulson presented 10 days ago, and it contains significant protections for families across the country who had nothing to do with creating this crisis but are feeling its effects in many ways. First, this bill protects taxpayers by requiring strong congressional oversight over expenditures under the plan; giving taxpayers a share of profits in participating companies; and requiring a President to ensure taxpayers are repaid in full, with Wall Street making up any difference. Furthermore, we have ensured that CEOs do not benefit from risky behavior by severely limiting executive compensation and ``golden parachute'' packages for any firms that take advantage of the Government assistance. Finally, the bill requires the Government to implement a plan to reduce foreclosures as it buys troubled financial assets like mortgage backed securities.

At its core, H.R. 3997 authorizes $700 billion for the Treasury Department to buy distressed mortgage-backed securities, expiring on December 31, 2009. Of that total, $250 billion would be for immediate release, with another $100 billion upon a Presidential certification of need. The final $350 billion could be made available if the President transmits a written report to Congress requesting the funds, and Congress would have the right to disapprove this last installment. Spending authority would be overseen by a new Financial Stability Oversight Board, which will review the Treasury Department's actions and its effects on the financial markets and the housing market, and by a special inspector general office to conduct and supervise audits and investigations of the actions taken under this bill. Treasury must also report to Congress 60 days after it begins using this authority, and every 30 days thereafter.

Furthermore, H.R. 3997 establishes a joint congressional oversight panel to review the current state of the financial markets and the regulatory system. This panel will submit a report on the current regulatory system and its effectiveness at overseeing the participants in the financial system and protecting consumers. This provision is critical, since going forward, we must ensure that our financial sector is no longer allowed to put ordinary Americans in danger by pursuing high-risk behavior with little to no oversight. We must investigate companies that took advantage of lenient regulation or possibly acted outside of Federal regulations entirely. And we must learn from our mistakes, establishing new regulations and ensuring the laws already on the books are enforced.

Madam Speaker, let me assure my colleagues and my constituents that if I thought the bill before us today was nothing more than a hand-out to high-flying Wall Street investors who suddenly found themselves in trouble and decided they didn't like losing money, I would be the first in line to cast a no vote. Unfortunately, this problem is much bigger and much less selective about who it might hurt. We need to take action, and we need to do it now. This legislation represents a good, bipartisan solution to a situation none of us wanted to find ourselves in. I want to thank Speaker Pelosi, Chairman Frank and many other colleagues for their tireless work on this bill. I encourage all my colleagues to vote for this bill.