Barack Obama Inaugurated as 44th President of the United States

President Obama Extends an Olive Branch:
Let me first begin by recognizing the achievement of Barack Obama and his election as our nation’s 44th President and first President of African ancestry. There are many issues facing our country and President Obama was elected promising to usher in a new era of bipartisanship. I am encouraged that he has begun his Presidency by extending an olive branch to House Republicans and will meet with Leader John Boehner and Whip Eric Cantor about elements we’d like to see in a stimulus from H.R.470, “The Economic Recovery and Middle-Class Tax Relief Act,” which I outlined in last week’s e-newsletter.

Differences Emerge on Meaning and Nature of Stimulus

House Speaker Pelosi and Senate Majority Leader Reid Have Not Yet Received the Memo:
Despite President Obama’s pledge to work with members of both parties to forge a bipartisan compromise, I am discouraged by the actions of Pelosi and Reid in recent days regarding any economic stimulus package. Senator Reid has not allowed any Republican amendment to any bill to be considered since July. Speaker Pelosi, even with her increased majorities, further diminished the opportunity for members of the minority party to offer either alternative bills or amendments even though her large majorities could likely defeat most Republican amendments if called up for a vote. Like we saw with the $700 billion bailout which has proven problematic to say the least, I do not believe any effective economic stimulus can be crafted without minority input; the first, and perhaps most significant, legislation to be considered by our new President should not be rammed through without debate or amendment.

Pelosi “Stimulus” Has More Pork Than a BBQ at a Hog Calling Contest:  
The bill being proposed by Pelosi is not stimulus. The nonpartisan Congressional Budget Office projected that only 7% of the infrastructure spending would be spent by September of 2009 and only 1/3 of spending would happen in the next two years. Under the guise of only approving “shovel-ready” projects, Pelosi has curiously back-loaded the so-called stimulus with special interest projects, pork-barrel spending, and earmarks stretching until 2019. With all economic experts agreeing that we will be out of a recession late in 2010, why would 2/3 of the “stimulus” be earmarked for 2012-2019? This is a trojan horse for wasteful government spending when we could give the American people wide-ranging, bold, and fast-acting tax relief so they can spend their own money the way they best see fit for their families. For those addicted to spreading pork around their district, inserting hundreds of billions in earmarks into this “urgent” stimulus bill is just the vehicle they needed. Furthermore, even if this bill was front-loaded, there is no needs-based assessment or shovel-ready test for these projects.

TARP 2.0

Senate Vote on Approving Second Half of Bailout Makes House Vote Moot:
Congress spent the last two weeks debating whether or not to disperse the second half ($350 billion) of the $700 billion bailout that was passed in the fall. On Thursday, January 22nd, I voted in favor of H.J.Res.3, which passed the House by a vote of 270 to 155. H.J.Res.3 expressed the disapproval for disbursing the second $350 billion. This vote was moot, however, because according to wording in the original legislation, both the Senate and House would have had to pass the disapproval measure in order to prevent the dispersal of funds, and the Senate had already approved dispersal of those funds on January 15th.   

The hurried passage of the first half of the $700 billion in October and the widely publicized problems that followed are not altogether surprising, particularly given the lack of a committee markup of the bill and the disallowance of any substitute bills or amendments to be considered for a vote or even debated on the House – or Senate – floor.

Barney Frank’s TARP “Reform” Bill D.O.A. in Senate:
Last week, Barney Frank, Chairman of the House Committee on Financial Services, introduced his TARP “Reform” and “Accountability” Act, H.R.384. It should be called the “Katy Bar the Door” Act. Frank’s bill, which Senators have already said will not pass the Senate, would expand the President’s authority to use that money for other purposes, and would explicitly give authority to him to continue giving more loans to the auto companies. Furthermore, Frank’s bill would stipulate that TARP funding could be used for state and local municipal bonds, consumer loans, and commercial real estate loans while broadening the incoming Treasury Secretary’s enforcement authority. This bill would likely lead to more problems not unlike ones in the first $350 billion that angered many Americans.

Ramos and Compean Receive Presidential Commutation

Texas Delegation Comes Together to Push for Commutation:
On January 19, 2009, President George W. Bush utilized his Constitutional authority to commute the sentences of U.S. Border Patrol Agents Ignacio Ramos and Jose Compean. After two years of public outcry and pressure from the entire Texas congressional delegation (including both of our Senators and all 32 Congressmen) and other members of Congress, President Bush made the correct decision to commute their sentences.

Property Rights Action Caucus is Born

Protecting Private Property (both Physical and Intellectual) is a Policy Priority:
Caucuses are a very important vehicle for fostering new ideas and cooperation in the House of Representatives. Many caucuses are bipartisan and allow members passionate about a specific issue to join with others and discuss legislative solutions outside of the formal committee structure. In light of Kelo v. City of New London (decided in 2005 by the U.S. Supreme Court) which radically redefined the takings clause of the 5th Amendment and eroded basic private property rights, it is imperative that we work together to address any further rulings by taking up legislation to restore the original understanding of the clause. As a member of the newly-formed Property Rights Action Caucus, I look forward to working with caucus members to help educate my other colleagues on the issue and to develop a groundswell of public sentiment for sensible legislation protecting private property from unnecessary and unconstitutional intrusion.   

This week’s votes on the floor, hearings, and markups

Each week I get the opportunity to represent you in Congress by: 1) voting on legislation that comes to the House floor; and 2) participating in committee hearings and markups for the Committee on Financial Services. 

Key House Floor Votes

“No” to a Hastily Put Together Health Bill with No Minority Input and Fatal Flaws:
On Wednesday, January 14th, I opposed H.R.2 for several reasons. First, it will invite illegal immigrants to apply for Medicaid and SCHIP by gutting provisions requiring photo identification when applying for coverage. After passage of this bill, only verbal presentation of a social security number as proof of citizenship will be required, unnecessarily inviting fraud, waste, and abuse into the process. This bill contains no requirement that a person applying for benefits be asked to prove he or she is the person linked with the social security number he or she gives at the time of application. The low threshold set for proving identity will likely lead to an increase in the number of cases of identity theft. Taxpayers should be concerned that the Inspector General of the Department of Health and Human Services found that, in 2005, roughly 3% of funds went to those not eligible for such benefits resulting in billions of dollars in waste.

H.R.2 also levies a heavy tobacco tax, which disproportionately affects low income people, to pay for the program. Ironically, studies show that smoking rates have been dropping for decades and a tax increase would surely cause more smokers to quit, therefore drying up the funding source. Perplexing to me, though, is that after implementation of this bizarre funding mechanism, authors of this bill will have to work to recruit more smokers – because the tobacco tax increases will lead to a predictable acceleration in the decline in smoking – to fund healthcare for poor children. In addition to providing coverage for those low income people who cannot afford healthcare, this plan would provide coverage to over 500,000 new enrollees who already have private insurance coverage rather than focusing on coverage for the neediest children.

Lastly, I received several calls from physicians all over the 24th District opposing the bill because this bill prevents physician-owned hospitals from participating in Medicare and severely restricts the growth/expansion of existing hospitals, both of which are a great concern to me. Approximately 30 physician-owned hospitals nationwide (including one in Southlake) will not be recognized by Medicare and will be ineligible for the self-referral exemption because construction on those hospitals will not be complete before this legislation is enacted.

This (and last) week in history

In 1908, Alpha Kappa Alpha Sorority becomes the first Greek-letter campus organization for African-American women.

In 1946, General MacArthur establishes the International Military Tribunal for the Far East to try Japanese war criminals.

In 1964, the poll tax is prohibited after the 24th Amendment is ratified.

In 1966, Robert Weaver is appointed by President Johnson as Secretary of Housing and Urban Development becoming first African American cabinet member. 

In 1973, the Supreme Court of the United States delivers its decision in Roe v. Wade.

In 1981, Iran releases 52 Americans after 444 days in captivity just 20 minutes after Ronald Reagan is inaugurated as our 40th President.

In 1986, for the first time, Martin Luther King, Jr. Day is celebrated as a federal holiday.

In 1990, Douglas Wilder (Virginia) becomes the first African American governor in the United States.

I am honored to represent the 24th District of Texas, and appreciate your interest in my e-newsletter.  Please contact my District or DC office with any further questions you may have or visit my website at www.marchant.house.gov.