Speaker Pelosi and Leader Harry Reid today sent the following letter to the Big Three U.S. auto executives, calling on them to “submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments” by December 2nd:

November 21, 2008

Dear Messrs Wagoner, Mulally, and Nardelli:

We recognize the importance of the domestic automobile industry and are committed to working with you to ensure its viability in the years to come. One in 10 American jobs is related to auto manufacturing; our national security depends on the industry's technologies and manufacturing capacity; and our competitiveness in a global economy depends on its pursuit of excellence.

As you know, Congress has provided President Bush, the Chairman of the Federal Reserve, and the Treasury Department the authority they need under the Emergency Economic Stabilization Act (EESA) as well as other authorities to provide short-term financial assistance to the auto companies.

Unfortunately, the Bush Administration and the Federal Reserve have thus far declined to use their powers to improve our nation's financial stability by assisting the auto industry. Notwithstanding existing authorities, this Congress is prepared to consider additional legislation that would give the assistance you seek, provided that you submit a credible restructuring plan that results in a viable industry, with quality jobs, and economic opportunity for the 21st century while protecting taxpayer investments.

In order for Congress to act in a timely manner, this plan must be presented to Congress by December 2nd, specifically to Senate Banking Committee Chairman Christopher Dodd and Financial Services Committee Chairman Barney Frank.

It is critical that you meet this deadline since we have announced we are prepared to come back into session the week of December 8 to consider legislation to assist your industry. We intend to give pertinent agencies within the executive branch, the Government Accountability Office, the Board of Governors of the Federal Reserve, as well as outside experts, the opportunity to comment on your work.

The plan must:

Provide a forthright, documented assessment of the auto companies' current operating cash position, short-term liquidity needs to continue operations as a going-concern, and how they will meet the financing needs associated with the plan to ensure the companies' long-term viability as they retool for the future;

Provide varying estimates of the terms of the loan requested with varying assumptions including that of automobile sales at current rates, at slightly improved rates, and at worse rates;

Provide for specific measures designed to ensure transparency and accountability, including regular reporting to, and information-sharing with, any federal government oversight mechanisms established to safeguard taxpayer investments;

Protect taxpayers by granting the most senior status for any government loans provided, ensuring that taxpayers get paid back first;

Assure that taxpayers benefit as corporate conditions improve and shareholder value increases through the provision of warrants or other mechanisms;

Bar the payment of dividends and excessive executive compensation, including bonuses and golden parachutes by companies receiving taxpayer assistance;

Include proposals to address the payment of health care and pension obligations;

Demonstrate the auto companies' ability to achieve the fuel efficiency requirements set forth in the Energy Independence and Security Act of 2007, and become a long-term global leader in the production of energy-efficient advanced technology vehicles; and

Require that government loans be immediately callable if long-term plan benchmarks are not met.

The auto companies' shareholders, business partners, and prospective benefactors—the American people—deserve to see a plan that is accountable to taxpayers and that is viable for the long-term. In return for their additional burden, taxpayers also deserve to see top automobile executives making significant sacrifices and major changes to their way of doing business.

We look forward to working with you to ensure a viable American automobile manufacturing sector for decades to come. If we are successful, we can ensure a brighter future for the automobile industry, our nation, and our planet.

Thank you for your prompt attention to this matter.

Sincerely,

Nancy Pelosi
Speaker of the House

Harry Reid
Senate Majority Leader

From Rep. Diana DeGette:

WASHINGTON – As the Bush Administration takes action challenging reproductive rights in this country in its remaining days, U.S. Reps. Diana DeGette (D-CO) and Louise Slaughter (D-NY), co-chairs of the Congressional Pro-Choice Caucus, introduced legislation that would prohibit a dangerous proposed Department of Health and Human Services (HHS) regulation from being implemented. The measure was cosponsored by U.S. Reps. Tammy Baldwin (D-WI), Lois Capps (D-CA), Jerrold Nadler (D-NY), and Jan Schakowsky (D-IL). The proposed HHS rule would require any health care entity that receives federal financing to certify in writing that none of its employees are required to assist in any way with medical services they find objectionable. The legislation introduced today would keep HHS from moving forward with this rule.

"The Bush Administration's 11th hour attempt to restrict access to reproductive health care is not only abusive, but also threatens everyone's access to other vital health care services," said Rep. DeGette, Vice Chair of the Committee on Energy and Commerce. "This legislation sends a clear message that this is the wrong direction for health care policy in America. The Bush Administration continues to pursue its extreme ideology over sound public health care policies even as it enters its final days."

"Eight continuous years of trouncing on women’s reproductive rights and playing politics with science has obviously not been enough for this Administration," said Rep. Slaughter, Chairwoman of the House Committee on Rules. "As its parting gift to women across this country, the Administration has proposed a sweeping rule that goes beyond a woman's right to choose, beyond a woman's right to contraception and puts everyone's access to health care at risk. Even as the EEOC, including Bush appointees, strenuously objects to this rule, the Administration's unconscionable actions really show you just how out of touch they are with women and their families. In the 111th Congress, I hope we can focus on reducing the need for abortions through my bill, the Prevention First Act, which will empower women and expand access to affordable contraception."

DeGette, Slaughter, and 124 other Members of Congress sent a letter to the Department of Health and Human Services (HHS) in late September opposing the proposed rule, which would significantly undermine patients' access to vital health services and information. The letter argued that the "ill-conceived and unnecessary proposed rule puts politics and ideology before quality health care." Senators Hillary Clinton (D-NY) and Patty Murray (D-WA) introduced the Senate companion bill earlier today.

The Speaker commented on the draft rule in July, saying:

If the Administration goes through with this draft proposal, it will launch a dangerous assault on women's health.

The majority of Americans oppose this out of touch position that redefines contraception as abortion and represents a sustained pattern of the Bush Administration to reject medical and sound science in favor of a misguided ideology that has no place in our government.

I urge the President to reject this policy and join with Democrats to focus on preventing unintended pregnancies and reducing the need for abortion through increasing access to family planning services and access to affordable birth control.

The U.S. Senate passed legislation today to extend the amount of time out of work Americans can receive unemployment insurance benefits. The House overwhelmingly passed the bill in October; the measure now goes to the president for his signature. The Unemployment Compensation Extension Act of 2008 (H.R.6867) provides workers with an additional seven weeks of unemployment benefits for workers who have exhausted their regular unemployment and an additional 13 weeks of benefits for workers in states with the highest unemployment.

In light of today’s devastating economic news that new jobless claims rose to their highest level in more than 16 years, the Senate did the right thing for millions of out-of-work Americans. Unemployment benefits for more than a million Americans are set to expire by the end of the year. This extension will provide much-needed help for these families who still have to put food on the table, pay their home and heating bills, and look for a job.

With our nation’s financial wounds deepening by the day, we can’t allow the rug to get pulled out from under workers looking for a new job. Extending unemployment benefits is a no-brainer – it’s one of the most effective things we can do to help workers and stimulate our economy. With the holiday season fast approaching, it’s time for the President to give workers and families a helping hand by immediately signing this bill.

Today, the Democratic Caucus officially re-elected Rep. George Miller to chair the House Education and Labor Committee for the 111th Congress.

It is an honor and a privilege to continue to chair the Education and Labor Committee in the next Congress, and I thank my colleagues for their support.

If anything, this historic election reminded us that Americans from all regions, backgrounds and political stripes are united in our shared hopes and aspirations: A quality, affordable education for our children; a good-paying job with decent benefits; and a secure retirement after a lifetime of hard work. In a nation as great as ours, these dreams can – and must – be achieved.

I look forward to working with all members of this committee, the next Congress, and the new administration on a Main Street recovery plan that will revitalize our economy, and toward our larger goal of rebuilding and strengthening America’s middle class. Like President-Elect Obama, I’m confident we can reach this goal by working in a bipartisan way that transcends the politics of the past, and by making sure that our government is open, accountable and engages the public. Moving forward, our committee will also build on our efforts to use innovative strategies to make sure that the voices of Americans around the country are heard here in Washington.

I also know that no one is more excited about the opportunities before us than Senator Ted Kennedy. No one has fought harder for our children, workers and families than Ted, and no one could ask for a better partner in these challenging times. I am thrilled that he has returned to the Senate, and look forward to continuing to work closely with him on the important tasks that lie ahead.

More information on Chairman Miller's priorities for the committee in the 111th Congress »

Today the Senate passed H.R. 6867, the Unemployment Compensation Extension Act, which the House passed on October 3rd. The bill provides an additional 7 weeks of extended unemployment benefits for workers who have exhausted their unemployment benefits (providing 20 total weeks of extended benefits when combined with the 13 weeks provided earlier this year). The bill now goes to President Bush, who is expected to sign into law this week.

Speaker Pelosi on signing the bill:

With more Americans filing jobless claims than at any time since the 1992, the Senate's passage of the House's unemployment insurance extension legislation will help speed relief to more than 2 million workers who continue to search for new jobs in these difficult economic times. No American who is ready, willing and able to work and provide for their family should find themselves cut off from this critical assistance. I look forward to the President signing this legislation into law this week.

While extending unemployment benefits is essential, Congress and the President must continue to work together to help Americans weather this economic storm and strengthen our economy for the long term. We stand ready to work with President Bush and Senate Republicans to enact House-passed legislation that will create new jobs by investing in infrastructure, help states avoid deep cuts to critical services, and provide nutrition assistance to families in need.

Rep. George Miller, Chairman of the House Education and Labor Committee:

In light of today's devastating economic news that new jobless claims rose to their highest level in more than 16 years, the Senate did the right thing for millions of out-of-work Americans. Unemployment benefits for more than a million Americans are set to expire by the end of the year. This extension will provide much-needed help for these families who still have to put food on the table, pay their home and heating bills, and look for a job.

With our nation's financial wounds deepening by the day, we can't allow the rug to get pulled out from under workers looking for a new job. Extending unemployment benefits is a no-brainer – it's one of the most effective things we can do to help workers and stimulate our economy. With the holiday season fast approaching, it's time for the President to give workers and families a helping hand by immediately signing this bill.

Financial Services Committee Chairman Barney Frank sent a letter today to Treasury Secretary Paulson, following up on issues raised at Tuesday’s House Financial Services Committee oversight hearing on the Troubled Assets Relief Program (TARP). In the letter, Chairman Frank continues his call for Secretary Paulson to immediately use funds authorized by TARP legislation to help stem foreclosures.

The full text of the letter:

The Honorable Henry M. Paulson. Jr.
Secretary
Department of the Treasury
Washington, DC 20220

Dear Mr. Secretary:

I write to follow up on the November 18 House Financial Services Committee hearing on the Troubled Assets Relief Program, and to urge you in the strongest possible terms to use TARP funds immediately to support significant steps that can help stem the tidal wave of foreclosures threatening the stability of our financial system and our economy. As a first step, I applaud the regulatory changes in FHA's Hope for Homeowners program that you and the other members of the Hope for Homeowners Board approved November 19. These changes, authorized by Congress under the TARP legislation, should help expand use of the program.

As I noted in the hearing, however, the TARP statute unambiguously gives you the authority and a mandate to take much more aggressive action on foreclosures. While I support the use of TARP funds to stabilize the financial system through bank capital injections, the root causes of this crisis will remain unaddressed until TARP is deployed aggressively to mitigate the estimated 4 to 5 million foreclosures that will otherwise occur over the next two years. The Administration continues to emphasize HopeNow and other private initiatives, but they are simply not an adequate solution going forward.

At least four programs or proposals already exist that you could fund and operate through TARP to provide significant foreclosure relief:

FDIC Chairman Bair has proposed a broad program to modify and provide credit guarantees for troubled mortgages that could prevent an estimated 1.5 million foreclosures in the next year alone. Chairman Bair believes, as do I, that the authority already exists to run such a program through TARP under Section 109 of the legislation.

At the hearing economist Martin Feldstein proposed a "mortgage replacement program" allowing the government to substitute new loans for portions of existing troubled mortgages. These new government loans would replace 20% of the borrower's existing loan, with the remaining private mortgage (now for 80% of the original amount) being "full recourse," giving the creditor access to the borrower's assets beyond the security value of the home itself. This will lower borrowers' monthly payments and provide protection against falling into negative-equity positions that encourage default and foreclosure.

The recently approved changes to the FHA Hope for Homeowners program, as noted above, will help enhance participation. However, Treasury should augment these changes by using TARP funds (under the authority in Section 109) to reduce the high level of upfront and annual fees required under Hope for Homeowners loans. These high fees are depressing program use, and using TARP funds to pay them down could significantly increase the number of foreclosures averted.

TARP also mandates that Treasury implement a plan to maximize modifications to mortgages that it acquires. Because mortgages in danger of default clearly qualify as "troubled assets," I urge you to begin buying whole loans on a large scale for the specific purpose of modifying those loans and keeping the borrowers in their homes.

We can not afford to miss this opportunity to act. Please let me know if my staff or I can be of help in getting these initiatives up and running as quickly as possible.

Sincerely,

BARNEY FRANK
Chairman