This Week in Washington – Friday, May 21, 2010
Earlier this week, I signed on as a co-sponsor of H.R. 5299, the "European Bailout Protection Act." This bill prohibits U.S. contributions to the International Monetary Fund (IMF) from being used to loan money to irresponsible European Union (EU) nations until they can bring their debt-to-GDP ratio to 60 percent.
As you have probably heard, Greece, an EU member, is in dire fiscal condition given the size of its debt, irresponsible spending, and lavish entitlement and pension programs. Greece's economic hardships prompted the EU and the IMF to announce an agreement providing almost $1 trillion in aid in an attempt to neutralize this self-inflicted crisis.
A meltdown of the Greek economy will most certainly have negative effects on European and international markets in the short term. However, long term economic stabilization and growth cannot occur until countries like Greece make some tough decisions. They must choose to reduce spending, end government bailouts and live within their means.
In the meantime, American taxpayers should not be on the hook for the financial mistakes of foreign governments.
YouCut Initiative
You may be following the new "YouCut" initiative created by Eric Cantor, my colleague from Virginia and also the House Republican Whip. It allows you, the American taxpayer, to vote on spending cuts you'd like to see the House enact.
Each week, House Republicans will bring the "winning" program to the floor for a vote each week. Over 280,000 American voted his week to cut one wasteful program in particular. Yesterday, my fellow Republicans and I brought it up for a vote.
Hidden within the 2009 stimulus bill was a new $5 billion welfare emergency fund designed to promote welfare dependence. The new fund actually pays states if they increase welfare caseloads, among other outcomes.
How was this money used? Here's an example: A program operated in New York last summer used these funds to make one-time $200 payments to welfare and food stamp recipients for back-to-school purchases. In actuality, some recipients used the money, as CBS News put it, to buy "flat screen TVs, iPods, and video gaming systems." Convenience stores in low-income areas noted marked "increases in beer, lotto, and cigarette sales."
Unfortunately, our attempt failed on a vote of 177-240. This does not, however, mean we will back down and accept Washington's over-blown spending habits. We'll continue to use "YouCut" to force Congress to address programs that waste your hard earned tax dollars every day.
Voting for next weeks wasteful program is currently open. I encourage you to go to the website and vote. You can also submit your own ideas for wasteful programs you'd like to see cut.
This Week
On Wednesday, May 19, the House again considered the America COMPETES Reauthorization Act, now H.R. 5323. It was again rejected. While I strongly support basic research and development, as well as and science, technology, engineering, and mathematics (STEM) education, I remain concerned with the bill's excessive spending increases and new programs.
We simply cannot afford expanding government programs at a time when the total national debt is about to surpass $13 trillion and we are predicted run a deficit of almost $1.4 trillion this fiscal year alone.
Like I said last week, we can't continue to deficit spend indefinitely.
The House will be is session again next week. Have a good weekend.
Sincerely,
Sam Graves