Shuster Votes to Cut Spending by $840 million, Terminate Massive Federal SubsidyFriday March 11, 2011
Shuster Votes to Cut Spending by $840 million, Terminate Massive Federal Subsidy
Washington, DC – Congressman Bill Shuster voted today to cut spending by $840 million and terminate a massive federal subsidy by eliminating a provision under the Dodd-Frank Wall Street Reform and Consumer Protection Act.
The Dodd-Frank Act established a $1 billion HUD Emergency Homeowner Relief Program, which provides loans or credit advances to unemployed borrowers who cannot pay their mortgages because of unemployment or loss of income. The Obama administration estimated the program to have a 98 percent subsidy rate. This means for every $1 spent on this federal program, the taxpayers will lose 98 cents. The program was initially authorized in 1975 and was never funded during its 35 year history.
“I don’t know anyone in my district who would agree with continuing a program that costs taxpayers 98 cents on the dollar,” Shuster said. “This is yet another example of government waste and inefficiency and I am pleased to have voted to terminate this program.”