Mr. Chairman, I yield myself such time as I may consume. Mr. Speaker, I am pleased to present to the House the Fiscal Year 2006 Transportation, Treasury, HUD appropriations bill which was passed out of committee via voice vote last week.…
Mr. Chairman, I yield myself such time as I may consume.
Mr. Speaker, I am pleased to present to the House the Fiscal Year 2006 Transportation, Treasury, HUD appropriations bill which was passed out of committee via voice vote last week.
Before getting into the specifics of the bill, I want to commend the gentleman from California (Chairman Lewis) and the ranking member, the gentleman from Wisconsin (Mr. Obey), for their tireless work to finish these bills by the end of this week.
Here we are on June 29 marking up the final of the 11 spending bills. I am sure that the gentleman from California (Chairman Lewis) has been saving best for last.
Mr. Chairman, I must acknowledge the role that my ranking member, the gentleman from Massachusetts (Mr. Olver), played in assembling this bill. I consider him a partner in creating the product before you because his input has been invaluable. We have found common ground more often than not, and what few differences remain are the result of honest disagreement.
He and I have had several conversations about almost every facet of this bill. The staff has met repeatedly, and information has been shared in a timely manner. I believe the bill is stronger because of the input the gentleman from Massachusetts (Mr. Olver) has provided.
I also want to mention, of course, the staff which has contributed heavily and in mighty ways, extraordinary ways, to the completion of this bill. My clerk, Dena Baron, Cheryle Tucker, David Gibbons, David Napoliello, Steve Crane, Tammy Hughes, Kristen Jones; and on the minority side, Mike Malone, the clerk, and Michelle Burkett. They have done tremendous work.
As my colleagues know, this is the committee's first year with its current jurisdiction, and I believe the product before us is worthy of this body's
strong support. It is a fiscally responsible bill, funding high- priority programs and eliminating Federal funds for other programs that are duplicative or ineffective.
The bill before us is at our 302(b) allocation of $66.9 billion in BA and provides total budgetary resources, including transportation obligation limitations and mandatory spending, of $134.9 billion, an increase of $7.2 billion over last year and $8.8 billion over the request.
Let me be very clear here. These increases do not represent frivolous spending by the committee. The increases over the budget request and last year are due to House rules mandating certain funding levels for highways, transit and aviation programs, House rules that we voted for.
We also retained CDBG in the bill and were able to fund it at a level near last year's limit. As most of my colleagues know, the President proposed eliminating that program, but the response was overwhelming to keep it right here in HUD.
In transportation, we have met all of our guarantees for surface transportation and safety, and aviation infrastructure as included in TEA-LU and Vision-100. For FAA operations, we have provided funds for 595 new controllers, plus an additional $8 million over the request for safety inspectors.
I realize there will be a lot of attention paid to Amtrak today. The bill provides $550 million, $190 million more than was included in the budget request, and $657 billion below last year's enacted level. To that end, this bill prohibits Federal funds for any Amtrak route that requires a subsidy of $30 or more per passenger, most of which, of course, are long-distance routes. The 24 routes that require a Federal subsidy of less than $30 per passenger will continue to receive Federal aid, and those 24 routes account for more than 80 percent of Amtrak's annual ridership. Let me just repeat that: The 24 routes that will continue to receive the Federal subsidy make up more than 80 percent of the ridership.
Specifically, the bill permits Amtrak to use Federal funds to support operations for the following: All routes in the northeast corridor, including spurs that run from New York City to Albany, from New Haven, Connecticut, to Vermont, and from Portland, Maine, to Boston; routes running through Pennsylvania; most corridor routes in the Midwest; trains running from Portland, Oregon, to Vancouver; and corridor routes in California.
I want to also be clear that it does not prohibit Amtrak from using non-Federal resources to support other routes, nor does it mandate that any routes be shut down or truncated. We need to make it clear that Congress will no longer sanction the use of taxpayer dollars on such extremely unprofitable routes.
From the very first time I picked up the subcommittees gavel, I knew that Amtrak would be a major issue of contention. I came in with an open mind and had no preconceived notions of an outcome. I instructed staff to follow the facts wherever they may lead, and Mr. Chairman, they have led us right here. The Amtrak proposal before the House is an honest one and worthy of our support.
In the Department of the Treasury, we fully funded the budget request for the Office of Foreign Assets Control and the Financial Crimes Enforcement Network. The Community Development Financial Institutions program fund is funded at last year's level of $55 million.
The IRS is funded at a total of $10.5 billion, an increase of $313 million from last year and a decrease of $130 million from the request. This funding level allows IRS to maintain the critical balance between taxpayer services and enforcement activities. While the IRS requested more funds for enforcement, the request relied on a Budget Enforcement Act provision that our Committee on the Budget did not adopt in the budget resolution.
Also included in Title II is an administrative provision that prohibits the IRS from closing taxpayer assistance centers until IRS submits a report outlining the impacts of the closures on taxpayer compliance and consults with stakeholders.
The committee had two priorities to meet for HUD in 2006. First and foremost was the protection of all extremely low-income families currently receiving Section 8 and public housing rental assistance, and to continue to restore facilities and rental assistance for low-income individuals that are severely disabled or have HIV/AIDS, all of which the administration proposed for major reductions. Failure to fully meet this commitment would have resulted in thousands of families losing their assistance and becoming homeless. To achieve this, the committee added more than $2 billion over last year's funding level and more than $700 million over the administration's proposals for these programs.
Our second priority is to retain and restore to the maximum extent possible the formula funding for cities and towns across America through the Community Development Block Grant. As my colleagues know, the administration proposed to terminate this program, which was funded at $4.7 billion last year, but we were able to restore formula funding for CDBG to within 6 percent of the amounts provided in 2005.
To fund these high priorities, however, the committee had to do a broad sweep of duplicative and lower-priority programs throughout the Department, including boutique programs that have typically been funded by reducing the amounts in the formula CDBG program. It is never easy to stop funding a program once it gets started receiving Federal funds, but we have to make these decisions in order to meet our main funding objectives.
For the Judiciary, the bill provides sufficient funding to maintain current services of the Federal Judiciary, including rent and personnel increases. In addition, we fully fund the Judiciary's revised request for court security.
For the District of Columbia, we provided the budget request for Federal payments to the District, which includes tuition assistance, court costs and school improvement. As for the District's local budget, the bill appropriates the budget and financial plan by reference, and carries many of the same general provisions of the past.
We funded HIDTA, the High Intensity Drug Trafficking Areas Program at $227 million. That is the same as last year, and it was $77 million over the request. Other Executive Office of the President programs are funded at the requested levels.
As for the General Provisions, we recommend no substantive changes to the provisions carried in prior years.
All in all, after much hard work and discussion, I believe that we have a balanced bill before us. No, we did not fund every program, but we did fund the higher priorities under our jurisdiction that will deliver the best results to the most people, and that is our responsibility.
I would like to take a moment and talk about a few of the amendments which may be before us today. This is a large bill with a rather vast and disparate list of agencies under its title. When it comes to dividing up the 302(b) allocation, we really have to do a balancing act. Each agency has a responsibility to the citizens of this Nation and each has a role to play.
GSA has the responsibility for being the Federal landlord, for every citizen receiving Social Security or needing a passport or a visa, for every veteran needing his claim adjudicated, for every neighborhood waiting on an economic development grant, every citizen seeking justice in a Federal courtroom, or relying on the Department of Homeland Security to keep our borders safe. GSA provides those buildings to do its work, and the public, of course, to find the government. To view the Federal Buildings Fund as a bottomless offset for ``program'' spending is dishonest to the programs we propose to fund.
I do have an amendment to offer with the gentleman from Massachusetts, my friend, the ranking member of the subcommittee, that takes money from an unidentified project in GSA and moves it to CDBG for Youthbuild and tax law enforcement.
Other than that one amendment, I think it is a good bill. I urge its adoption quickly so we can move to other urgent business.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 6 minutes to the gentleman from New York (Mr. Sweeney), the vice chair of the subcommittee.
Mr. Chairman, I yield 3 minutes to the gentleman from Ohio (Mr. Regula), the chairman of the Subcommittee on Labor, Health and Human Services, Education and Related Agencies.
(Mr. REGULA asked and was given permission to revise and extend his remarks.)
Mr. Chairman, I yield 2 minutes to the gentleman from Ohio (Mr. Turner).
Mr. Chairman, will the gentleman yield?
Mr. Chairman, I thank the gentleman from Ohio (Mr. Turner) for working with me on CDBG and for his efforts to help fund this program.
Restoring the funds for CDBG was our highest priority after funding assistance for the neediest families in our society. Funding for CDBG remains one of our highest priorities, and I will do everything to return the program as close to the 2005 enacted level as possible.
That was my intent during the development of this bill, and it remains my intent as we continue to final passage of this appropriation act for 2006.
Mr. Chairman, I yield 1 minute to the gentleman from New York (Mr. Boehlert).
Mr. Chairman, will the gentleman yield?
Mr. Chairman, the gentleman raises a very important issue. I acknowledge that series-type hybrid systems have the same goals and encourage the Federal Transit Administration to increase the procurement of buses utilizing both types of systems.
Mr. Chairman, I yield 2 minutes to the gentleman from Wisconsin (Mr. Petri).
Mr. Chairman, will the gentleman yield?
Mr. Chairman, I am aware of the accounting problem that split-funding the Federal Transit Administration program has created. I will work on this issue in conference and trust that there will be a long-term authorization in place by the time the House Committee on Appropriations and the Senate Appropriations Committee convene a conference.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 2 minutes to the gentleman from California (Mr. Honda).
Mr. Chairman, will the gentleman yield?
Mr. Chairman, as the gentleman knows, we had included funding in last year's bill to study flight attendant fatigue. I understand the study was due to Congress on June 1, 2005, and I will be happy to work with the gentleman from California to determine the status of CAMI's current study and expedite its completion, if possible.
Mr. Chairman, I yield 2 minutes to the gentleman from Indiana (Mr. Souder).
Mr. Chairman, I yield myself such time as I may consume.
Mr. Chairman, I, too, want to thank everyone that participated in this opening inning or two of activity. We have a long way to go. But I do think, with the work of the staff on both sides, who I think have done extraordinarily well to shape this product into what it is, I am very, very happy with where we are in terms of the kind of bill. I know there is going to be more debate, and we look forward to that.
Mr. Chairman, I yield back the balance of my time.
Mr. Chairman, I reserve a point of order against the amendment.
Mr. Chairman, I rise in opposition to the amendment.
Mr. Chairman, I yield to the gentleman from California (Mr. Lewis).
Mr. Chairman, I make a point of order.
Mr. Chairman, I make a point of order against the amendment because it proposes to change existing law and constitutes legislation in an appropriations bill and therefore violates clause 2 of rule XXI.
Further, the rule states, in pertinent part: ``An amendment to a general appropriations bill shall not be in order if changing existing law.''
The amendment includes an emergency designation and, as such, constitutes legislation in violation of clause 2 of rule XXI.
I ask for a ruling from the Chair.
Mr. Chairman, if the gentleman will yield.
Mr. Chairman, I offer an amendment.
Mr. Chairman, this amendment provides an additional $38 million for tax enforcement efforts at IRS. These funds will significantly enhance our ability to close the tax gap by more than $400 million over 3 years.
Further, this amendment restores $67.5 million to CDBG. Some of these funds may need to be used to provide some funding for the YouthBuild program if the program is not authorized under the Department of Labor by the time of final passage of the appropriations act.
The program, for the moment, has been left in suspension because the administration has not yet submitted the needed legislation, but I am assured that the legislation will be submitted very soon.
I want to thank the ranking member, the gentleman from Massachusetts (Mr. Olver), for his diligence on these issues and for working with us.
Mr. Chairman, I urge the adoption of the Knollenberg-Olver amendment.
Mr. Chairman, will the gentlewoman yield?
Mr. Chairman, I can assure the gentlewoman that I will do everything I can to work with her to make sure that we do address this issue. So I thank the gentlewoman for bringing it up.
Mr. Chairman, I ask unanimous consent that debate on this amendment be limited to 40 minutes, equally divided and controlled by the proponent and myself as opponent, and that this limitation also apply to any amendments thereto, except one pro forma amendment each by the chairmen and ranking members of the Committee on Appropriations and its Subcommittee on TTHUD.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I continue to reserve my time, and I do not have at this point an additional speaker because there are a couple of things we are trying to work out right now.
Mr. Chairman, I continue to reserve my time.
Mr. Chairman, I yield myself such time as I may consume.
I rise in opposition to this amendment, which is a wholesale slash- and-burn attempt to restore funding for Amtrak. First, I want to state clearly that I want to reform Amtrak. It is a broken system that has siphoned billions of dollars from other priorities over the years.
For Members who agree that Amtrak needs to be reformed, this bill provides an excellent starting point. The bill preserves Federal funding for routes that are heavily utilized and that show signs of economic sustainability. It also preserves Federal subsidies for more than 80 percent of Amtrak riders, 80 percent. While the amendment proposes to leave the route limitation in place, I have little doubt that if it is successful another will follow to remove the limitation and return Amtrak to the status quo. I do not want to go to the status quo.
If that happens, Congress will again send the message to Amtrak that it is acceptable to run a route so unprofitable as to require a Federal subsidy of $466 per ticket. We have seen Amtrak's Federal subsidy grow from $521 million in fiscal year in 2002 to $1.2 billion in fiscal year 2005, and now Amtrak is asking for $1.8 billion. When is it going to end?
Continuing to throw good money after bad to maintain the status quo is totally unacceptable to me. Amtrak is threatening to shut down again because it is unwilling to make changes to improve its profitability. This marks the sixth time since 2002 that Amtrak's CEO, the sixth time since 2002, that Amtrak's CEO has threatened a shutdown if we do not provide more money.
The flaw in the argument that $550 million is not sufficient to operate trains is the assumption that Amtrak would have to shut down routes. There are cost-saving measures that Amtrak could adopt to continue long distance rail service, but it simply refuses to do so. Furthermore, the offsets to this amendment would cannibalize the Department of Transportation and important GSA facilities. These in effect would cause severe disruption to programs within the jurisdiction of the Committee on Transportation and Infrastructure.
First, the amendment proposes to completely eliminate several offices within the Office of the Secretary of Transportation.
Second, it cuts funding from the Transportation Planning, Research and Development account; $20 million of that funding is for commuter rail in the event Amtrak cannot meet its financial obligations. And $1.2 billion, if expanded to all routes, as I suspect will be offered, is according to Amtrak a ``shutdown'' number. So the amendment leaves commuter rail, particularly in the Northeast, in jeopardy.
Third, the amendment cuts funding from the DOT headquarters building. DOT's current lease runs out in June of 2007. If the building is not complete, significant rent increases on the old building will kick in, as will rent payments on the new one.
Fourth, the amendment eliminates railroad research and development which provide science and technology support for rail safety rulemakings. That means no funding for research on such things as grade crossing safety, derailment prevention, hazardous material transportation, like the chlorine tank cars that were involved in Graniteville, South Carolina, earlier this year, or simply passenger protection.
Fifth, the amendment cuts $435 million in repairs and alterations to government buildings nationwide. Some may be in your State. This funding is critical, given that the backlog in repairs and maintenance currently stands at $6.2 billion.
Six, the amendment takes funding from the Eisenhower Executive Office Building, which would delay completion of construction, including security-critical features and the cuts to building operations, much of which are a part of that. The Committee on Transportation and Infrastructure has repeatedly stressed the importance of modern, safe facilities.
If GSA is impacted in this fashion, we will not be able to pay for utilities, for maintenance, or cleaning. These cuts are in direct conflict with that policy.
Seventh, the amendment would void the FAA's flight service station contract that would deliver tremendous benefits to the general aviation community and save the FAA $2.2 billion over the next 10 years. Instead of realizing these savings, taxpayers will be on the hook for up to $350 million in additional costs to the FAA in the form of termination penalties.
This contract has been years in the making. Congress should not step in after the fact to stop this contract and deny better services to more than 600,000 private pilots.
Eight, the amendment eliminates the air transportation stabilization program which issues credit instruments to air carriers.
I know the authors of this amendment feel strongly about Amtrak, and I appreciate their interest in the issue. And what I am trying to do is to make sure that we do keep a system in the short term and one that will develop into a long-term situation. But if you obliterate important safety and construction projects, that is no way to go about funding a railroad that desperately needs to be reformed.
For these reasons, I ask Members to vote ``no.''
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I yield 3 minutes to the gentleman from Pennsylvania (Mr. Shuster).
Mr. Chairman, I yield 5 minutes to the gentleman from Kentucky (Mr. Rogers).
Mr. Chairman, I yield 1\1/2\ minutes to the gentleman from Texas (Mr. Sessions).
Mr. Chairman, I am just inquiring about the amount of time for each side.
Mr. Chairman, I yield 3 minutes to the gentleman from Florida (Mr. Mica).
Mr. Chairman, I yield myself the balance of my time.
I want to just comment on a couple of things in closing. This has been recommended to the CEO of Amtrak over and over: eliminating sleeper car service would save 100 million a year. Just improving their food and beverage service would save $83 million a year. If it would match its train sets to the actual locomotives and the cars they need, they could save still more money. All those things have been ignored.
Let me tell my colleagues a little about our friend who is the CEO of Amtrak.
This is a quote from David Gunn, ``President Bush's proposal to give Amtrak just over half of what it is seeking in Federal subsidies would shut the railroad down just as more passengers are taking the train.'' That was February 10, 2004.
Secondly, ``It would be a chaotic shutdown,'' says David Gunn, Amtrak president, on what would happen to the railroad if a bill passed last week by a House Appropriation Subcommittee becomes law. That was July of 2003.
Amtrak President David L. Gunn said last week that if the passenger railroad corporation does not get a loan of at least $200 million by the end of month, he will be forced to begin an orderly shutdown of all Amtrak passenger service in July; June 15, 2002.
And when he was with the folks in Toronto, ``Bits and pieces of the Toronto Transit Commission risk being shut down and abandoned unless the cash-strapped organization gets proper funding from the metro and provincial governments, transit boss David Gunn said.'' That was in the Toronto Star, February 17, 1996.
Going back to December 30, 1982, ``Authorities in Philadelphia and the New York area are bracing for possible shutdowns or slowdowns of commuter rail service beginning New Year's day. `I would not assume my train will be there Monday morning,' General Manager David Gunn warned commuters.''
Finally, ``Without an emergency transfusion of public funds, this area's commuter-train service could die before next July, transportation officials have warned. `There is the real risk of a shutdown for the rail service,' said David Gunn.''
This gentleman has done nothing but ask for money; no reform, just money. And this amendment lies on a phoney offset to reward mismanagement of Amtrak. The bill fully supports rail service for four out of five riders or 80 percent of Amtrak's ridership. I oppose this amendment.
Mr. Chairman, I reserve a point of order on the gentlewoman's amendment.
Mr. Chairman, I rise in opposition to the amendment.
This amendment would add $47.7 million to the fair housing budget. The amendment would more than double funding for the program over the 2005 level. There is no possible justification for doubling the program in 1 year.
Additionally, this program has one of the lowest spend-out rates in all of HUD. Simply put, these funds could never be used by HUD, and they are absolutely unnecessary. The committee has funded the program at the requested level which HUD has said is full funding. I have already indicated why this is the case.
Also, as drafted, all of the funds would go to the FHAP program. If Velazquez did not mean to double the total and put it all in the FHAP program, I strongly suggest that the gentlewoman should withdraw the amendment.
Mr. Chairman, I ask unanimous consent to strike the requisite number of words.
Mr. Chairman, I am very opposed to increasing this program at the expense of other critical programs. There are a number of reasons.
The committee mark fully funds the amount requested by the administration and fully funds the program that has been in place for the last decade. These funds go to State and local governments to abate lead-based paint in homes that will not be restored through modernization or resale. Three years ago, the Senate began a new demonstration program and added between $50 million and $75 million. The House has not included these funds in subsequent years, and the Senate has attempted to continue the demonstration program each year. They may well try to do so again.
The committee is simply not in a position to absorb a $60 million increase in funding for this demonstration program at the expense of programs that are being funded at the 2005 level or below. This is not an appropriate trade-off.
Mr. Chairman, I urge that the amendment be defeated and we work to determine if the program should be included during conference.
I do, Mr. Chairman.
Mr. Chairman, I offer an amendment.
Mr. Chairman, this is a very simple amendment. On page 7, line 8, after the dollar amount, insert ``increased by $263,000,000,'' and page 7, line 12, after the dollar amount, insert ``increased by $263,000,000.''
What it does simply is it adds $263 million to FAA safety programs.
Mr. Chairman, I reserve a point of order on the gentleman's amendment.
Mr. Chairman, I make a point order against the amendment because it increases an appropriation from the Airport and Airway Trust Fund over the amount authorized from that fund and therefore violates clause 2 of rule XXI.
Mr. Chairman, I rise in strong opposition to this amendment.
Mr. Chairman, this amendment would remove from the bill the limitation on routes that would be eligible for Federal funding, take them all out. It would strip any semblance of reform out of the House bill. All reform goes out the window.
If we want to talk about killing Amtrak, if you really want to kill it, this is the way to do it. In the FY 2006 grant request, Amtrak specifically stated that it cannot continue to operate all routes with $1.2 billion, all routes. The LaTourette amendment offered earlier provides less than $1.2 billion. If this amendment is adopted, the northeast corridor is in jeopardy, the northeast corridor is in real bad shape.
The limitation in the bill protects the northeast corridor. This amendment does not. Amtrak supporters in the northeast need to understand that supporting this amendment redirects the funding to the highly unprofitable routes, routes that carry Federal subsidies up to $466 per passenger, routes that carry less than 20 percent of Amtrak's riders, and it leaves more than 52 percent of Amtrak riders in the northeast exposed to a shutdown, 52 percent, over half.
Striking the limitation on route eligibility will siphon funding from routes that chill the promise of self-sufficiency, routes that are well used, to routes that will never, never, never under any circumstances be profitable.
I urge a ``no'' vote.
Mr. Chairman, I thank the gentleman for yielding.
What is interesting about this amendment is that only 20 percent of the people are involved in the elimination of these lines, but it is 50 percent of the cost. This is like a stake in the heart of a plan to establish some reform. You know, unfortunately, our
national rail service is no longer a source of pride. Amtrak has suffered mismanagement, irresponsible investments, poor service and a tremendous backlog of, maintenance that has sunk the system to a new low.
Amtrak, as we know it, faces tremendous debt while operating in a fundamentally flawed management system. Amtrak goes back to 1971, and the conception at that time was to produce it as a for-profit business. And it was expected to be one within 5 years. Here it is 35 years later. Guess what, they are in worse shape than ever. As has been pointed out, unfortunately for the taxpayers, its self-sufficiency is only a pipe dream. On average, taxpayers will pay a $210 subsidy, even though you do not think you are paying it, because some pay $466, you are because the system needs an average of $210 per person. All other transportation systems in our country are paid for directly. Highways and aviation are funded through user fees and excise taxes. Rail is the only passenger transportation mode that relies solely on the generosity of taxpayers. And this charity is running out.
It is funny, I have not heard one word from anybody who is complaining about shutting those lines down who is interested in doing anything locally to provide resources to keep it going. That is an option. We are not mandating the closure. And the message should be clear. In a time of flat budgets and large deficits, we cannot afford the abuse of taxpayer dollars on irresponsible ventures, poor management and unprofitable services.
I know that reform is never easy. But in Amtrak's case, it is essential. We have come to the last stop. Amtrak is no longer helping us move forward. Passenger rail must be reformed, or it will end, be the end of Amtrak.
Announcement by the Chairman
Mr. Chairman, I ask unanimous consent that the remainder of the bill through page 47, line 19, be considered as read, printed in the Record, and open to amendment at any point.
Mr. Chairman, I move to strike the last word.
I am opposed to increasing the budget for the fair housing programs for two reasons. The funds are not really needed, and a reduction in HUD staffing to pay for it is completely contrary to what HUD really needs. I do not disagree with the gentleman's interest in providing more for a worthwhile project. The increase in funds is not needed.
I think I have said this before. In 2002, 2003, and 2004, HUD was awarded $7 million in additional funding to conduct a new national survey of discrimination. This work was conducted by the Urban Institute and has now been completed, and the report is issued. However, in 2005 the increase in funds was retained to complete the work and reduce the backlog of discrimination cases that have built up at HUD and in the States. The backlog has been reduced and the report has been issued. Therefore, the administration requested that the budget return to historic funding levels, and the committee mark funds the program at the requested levels. We did not go below or above, but we did do it at requested levels.
So, therefore, I do not believe that a reduction in funding for HUD salaries and expenses is appropriate for an increase above the requested levels for fair housing programs. And what I figure is appropriate, I would say that we would urge the defeat of this.
I am prepared to go into specific details of why this does not represent any reduction in activity for the program if the gentleman would prefer, but the fact is that we have a very real and harmful cut to the agency's workforce in order to put more funds in FHIP. So I do not know where we go for more money, and that is the problem that I have.
The gentleman and I spoke yesterday; and the conversation was, I thought, very interesting; and also I admit to the fact that he has a point about things. I just wish that I could tell him this is what we can do, but we cannot do it under the circumstances.
I urge my colleagues, therefore, to prevent that from happening and vote ``no'' on the amendment. HUD can do better.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, this is an amendment that is difficult for me, but I am looking at it, and I wanted to point out a few things that I think everybody ought to know about what the Brownfields amendment, what kind of heartburn it causes us on the committee. We typically oppose any amendment to the Brownfields because of the fact that there are several reasons why this program can and should be considered a low priority. Let me explain.
While this program has been funded at about $25 million each year, the EPA has an identical program which in 2005 was funded at over $160 million per year and which has addressed over 8,000 sites. In 2006, there was an increase of $10 million to over $170 million in EPA. The facts being cited about the number of projects that Brownfields funding has served must be referring to the EPA's program, because in the HUD program, it is very, very minimal. Let me give an example.
HUD's program has been extremely slow in spending money. Only $35 million of the $175 million in appropriations received from 1998 to 2004 has been spent; $35 million out of $175 million. Rather than putting these funds into project development, funds are often used as a loan loss reserve rather than for reconstructing sites.
Besides EPA, there are several other sources of remediation funding. Besides EPA, the Brownfields tax deduction of $200 million is what is really driving redevelopment decisions, not the small amount of funds that are in HUD. Where grants have occurred, HUD grants are a very tiny portion of project development. HUD funds on average are just about 2.3 percent of the total development cost of the project. Moreover, for each HUD dollar, there are $28 in private and $12 in State and local funds committed to this project.
What all this means is that Brownfields has found a home at EPA; and it clearly belongs there, where there are fewer restrictions and more funds. However, I would pause at this point and say that on the basis of the work of the gentleman from California (Mr. Gary G. Miller) and what he has been doing, and we have had several conversations about this, and there may be a future again to look at this down the road, so I am not going to oppose it, but I wanted my colleagues to know something about what troubles us within HUD; and I am going to, in fact, offer to accept the gentleman's amendment.
I yield to the gentleman from California.
Mr. Chairman, we accept the amendment.
Mr. Chairman, I move to strike the last word.
It is my understanding that the chairman intends to work with us to incorporate this provision into future legislation that the House will consider. Is that correct?
I yield to the gentleman from California.
Mr. Chairman, reclaiming my time, that is exactly my understanding.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, I rise in strong opposition to this amendment. The amendment would require HUD to close down most of its systems and its operations, and would result in a loss of almost 400 jobs at HUD. All of this would occur almost immediately after the passage of the act.
And tragically, all of this would occur just to add funds to the Section 8 program that are not needed. It adds funds for renewals of vouchers when the renewal of vouchers has already been fully funded.
This is a tragic outcome for HUD for absolutely no benefit to families on assistance.
Everyone agrees that the renewal of vouchers at $15.531 billion fully funds this program for 2006. The industry groups have said so and HUD has said so.
The only reductions in the Section 8 program that this committee took
were in overhead and funds originally requested that the Department now agrees will not be needed in 2006.
Specifically, we reduced overhead and administrative fees to reflect the transfer of assistance from the tenant-based vouchers to project- based vouchers, and we reduced tenant protection funds because the Department indicates that the anticipated regulation that might require those funds is not going to be put out until after 2006.
What this amendment would accomplish is nothing, or to fund a shortfall of any kind. Each PHA will receive the amount it is entitled to, and then the additional funds will sit there and be swept up and used for other purposes by the administration, just as excess funds have been swept up and used for non-HUD purposes for years.
But here is what I want you to look at. Look at what happens to HUD in the meantime. The original request for HUD's working capital fund was for $265 million to maintain and develop new systems in HUD, new systems for accounting and new systems for programs.
The committee has already reduced the working capital fund by $120 million in order to fully fund critical assistance programs, such as the Section 8 program. The amount remaining is the barest of minimums that HUD has to have to keep its functions, keep its systems functioning and keep its functioning going.
The committee has already removed funds for all system enhancements and removed funds for all initiatives. Funds left were for maintaining the current systems and upgrades needed to meet Federal requirements such as their accounting system.
An additional cut of $120 million in their working capital fund would, according to HUD, simply shut down their systems, shut them down, and it would abrogate the contract they have with EDS and Lockheed Martin to maintain their systems. The contract itself runs over $100 million each year, and it is only maintenance. This amendment would leave all of HUD with only $45 million.
According to HUD officials, HUD would have to shut down the accounting system, the development of the new accounting system for FHA, system for PIH and to administer the Section 8 program, and then public housing programs will be shut down. Virtually all systems will be shut down.
Shutting down the contract that was painfully negotiated over a 4- year period will also throw HUD into chaos. They have no back up, nowhere to go except to the GSA schedule that will cost 150 percent of the cost of the contract, so with this amendment, HUD could not go there either.
I would just suggest to the gentleman that this is not workable by all of the investigation that we have done, and I would urge that we oppose this amendment.
Mr. Chairman, I reserve a point of order on the gentleman's amendment.
Mr. Chairman, I reserve a point of order on the amendment offered by the gentlewoman from Michigan.
If the gentlewoman will yield, I will indeed.
Mr. Chairman, if the gentlewoman will continue to yield, I would say to my friend and colleague from Michigan that I will do everything I can to work with her. I intend to do that. I know that we have worked things out on some other issues, so we will do our darnedest to make sure we work in fulfilling her desire as best we can.
Mr. Chairman, I ask unanimous consent that debate on this amendment and any amendments thereto be limited to 20 minutes to be equally divided and controlled by the proponent and myself, the opponent.
Mr. Chairman, I yield myself such time as I may consume.
Let me respond and give a little history about Hope VI. I have been on the
committee for 11 years, and I have seen this item come into view, and I have seen some of the experiences it has gone through.
First of all, we know Hope VI has had a difficult and varied history as a 10-year demonstration program. It has worked well in some cases, but in many more, it has not. The program has been unsuccessful in fulfilling its mission over the last 10 years and has been extremely difficult to implement. Consider the following: At the end of last month there remains $2.8 billion in appropriated funds that have been awarded to public housing agencies that has not as yet been spent.
Number two, Hope VI has failed to meet its mission. In the beginning, the idea was to demolish the 100,000 worst units. To date, over 133,000 of the worst units have been demolished, but only half of those were the result of Hope VI grants. The rest have been done by PHAs with their own money or with other Federal funds provided elsewhere in this bill.
Third, there are ample new funds available to continue the program until it is either fixed or dropped. No 2006 funds are necessary. I was one of the most supportive of this program when it first came on the scene, but I have grown tired over the years of seeing the subsidized failure that took place here.
The fourth item I would mention is that there would be a great disruption to the GSA programs if the amendment were adopted. The amendment proposes to seriously delay and reduce funding from seven important buildings that have been in the planning stage for many months.
I mention the security at the U.S. mission to the U.N., an FBI building in Houston, three courthouses in Missouri, Texas and New Mexico, and two border stations in Texas. These are critical projects that are scheduled for construction awards, and we plan to use them in 2005. These funds are not excess funds; far from it. They were added by GSA because of material, price increases, namely steel and concrete. Without the increases, these projects face real and significant funding shortfalls.
Last year, the committee had to reprogram funding five separate times from other projects because of materials' price increases on projects.
I know that there are places in the country that people can point to where they see this program working. But there are not as many as I would like, and for the reason I have already stated, I think this pretty much covers my position and what I feel would be the wrong move. As much as I know your hearts are strongly for this, I feel we cannot go there. We have been there, and it does not work. I ask for a ``no'' vote on the amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. Chairman, I have no further requests for time, and I yield back the balance of my time.