Mr. Chairman, I move to strike the last word. Mr. Chairman, I rise to oppose the gentleman from Pennsylvania's amendment. I can tell you that we dealt with this issue in committee on a bipartisan basis, and we decided that we wanted to…
Mr. Chairman, I move to strike the last word.
Mr. Chairman, I rise to oppose the gentleman from Pennsylvania's amendment. I can tell you that we dealt with this issue in committee on a bipartisan basis, and we decided that we wanted to take away the political operations of Fannie Mae and Freddie Mac.
We believe that you cannot serve two masters and do a good, faithful job to both masters.
One of the reasons that Fannie and Freddie got in accounting problems in the first place is because of a complacent board of directors that was populated with political employees.
We believe in a post-Enron era that it becomes very, very important that we take advantage of corporate governance standards that are second to none. Even those of us that have criticized certain portions of Sarbanes-Oxley like section 404 as being overzealous believe deeply that Sarbanes-Oxley had some good corporate governance and conflict of interest rules that has imposed. That is why we decided that the trustees should owe a duty to the shareholders and to good corporate governance, not to the political people that may have appointed them.
And I think Mr. Kanjorski has an understandable sympathy for having some public-oriented representatives, but the truth of the matter is you end up with members of the board of trustees that are going to have to decide between whether they owe loyalty to the person that appointed them, or to good, tough corporate governance and to the shareholders that are seeking their best wisdom.
I would ask that we strongly defer to the considered opinion on a bipartisan basis of the Financial Services Committee on this one, and that we reject the Kanjorski amendment.
Mr. Chairman, I demand a recorded vote.
Mr. Chairman, I move to strike the last word.
Mr. Chairman, before I yield to the gentleman from New Jersey to respond, I would say that, as has been pointed out earlier, this Congress has already provided some $3 billion in housing relief, and I have an amendment coming up that would put the first year's funding into Hurricane Katrina relief for housing.
I yield to the gentleman from Massachusetts.
Reclaiming my time, my amendment up next, will help veterans in the long run, and in the short run will go to Hurricane Katrina relief.
I yield to the gentleman from New Jersey (Mr. Garrett).
Mr. Chairman, I offer an amendment.
Mr. Chairman, picking up where we left off, we've had a considerable amount of debate about the affordable housing fund concerns that many of us in the minority party have about this fund. And I'm not going to put words in the chairman's mouth, as some people did. I promise not to do that to Chairman Frank.
But there has been an ongoing debate from about 5 o'clock on about whether or not the affordable housing fund amounts to a tax. The truth of the matter is, government only gets money one of three ways. It either prints money, and there's nothing in this bill that tells the Treasury Department or the Mint to print any money. It borrows money, as in Treasury bonds, and nothing in this bill suggests that anybody's going to be repaid the $3 billion that the GAO says this will cost over the next 5 years. Clearly, the only other way government gets money is a tax. Whether we are taxing the shareholders, whether we are taxing ultimately the consumers of low income, middle income mortgages, or a combination of both, this is a tax.
Now, the question is what to do with this tax money. A lot of us have concerns about the fact that we're going to dump this $3 billion into a fund that has not been created, does not have a specific mission, does not have guidelines and does not have any controlling organization or entity. It may turn out to be a wonderful way to spend $3 billion. But we are very concerned with what we see.
I have fashioned a compromise here because some of the amendments on the minority side get rid of the fund or don't fund the fund. I actually fully fund the fund with the Feeney amendment. And we fund it to deal with housing issues for people that are needy. We've heard a lot of talk about lack of compassion for the needy.
What my amendment does is to take the first year's $500 million plus and send it to the victims of Katrina. We heard passionately from the gentleman from Mississippi, from my friend from Louisiana about the needs in the aftermath of Katrina. We keep that funding in place in year one.
But beyond that, in the balance of the years, what we do is to fund necessary housing for disabled American veterans. We use a system to make sure that disabled American veterans who are homeless have access to an opportunity to have a home and a place to live through rental assistance.
I spoke to Secretary Nicholson today of the VA. He tells me that we estimate there are 195,000 homeless veterans. Many of those veterans are disabled, either mental disabilities that come from their battle scars, their battle wounds or physical disabilities. What better way to honor the commitment that the majority has made. We're going to deal with the truly needy in America. But also rest assured that we're going to be dealing with people that have earned the right to get housing assistance, than to suggest that after we take care of Katrina hurricane victims in year one, that we are going to take care of those veterans that are disabled, that are needy and that need a roof over their head.
Mr. Chairman, I commend this as a compromise between the majority's compassion for the needy and the minority's concern that the trust fund that has not been established and has no guidelines may go wayward with this $3 billion.
Would the gentleman yield?
Will the gentleman show me in my amendment where we refer to the voucher program? I would express to him our intent clearly is not to participate in the voucher. This is a new program.
It's a modification. With the permission of the chairman and unanimous consent, we have a modification.
Mr. Chairman, may I make a parliamentary inquiry?
Well, thank you. And when the gentleman had yielded previously, I had made a motion for unanimous consent to use the modified amendment which does not refer to the voucher program. And so I had made that motion and had not got a ruling.
Will the gentleman yield?
Now we're back on the voucher program that the chairman has a problem with. But I still suggest that the voucher program is better than putting it back.
Mr. Chairman, I demand a recorded vote.