Political Quotes

“H.R. 3355 requires the Treasury Department to offer low-cost subsidized Federal loans to State reinsurance funds. This bill employs the lesser used loan approach for States, rather than block grants or emergency funding, the usual methods of Federal assistance. The concept of the loan is unique from a block grant, as a loan implies a temporary extension of funds with agreed-upon terms of repayment. The concept of a loan also implies that there are consequences for those who do not abide by the terms of the loan, such as ineligibility to receive additional loans should one become delinquent on a current loan. It is not in the lender's interest to lend money to someone who has proven that he or she will not pay it back according to the contracted terms. This bill contains no prohibition on continued lending to States that are delinquent on loans authorized under this bill or extended through other Federal entities as found in other Federal loan programs. This consequence free-lending program will also allow States that choose to ignore the repayment responsibility to treat the loans as being in a state of eternal deferral, and expose the taxpayer to a tremendous amount of risk. My amendment seeks to protect the taxpayer by insuring that Federal loans go only to States with a proven track record of fiscal responsibility.”