Pearce Votes to End Wasteful Government Programs

Press Release

Today, Congressman Steve Pearce voted for H.R. 836, a bill to end the Emergency Mortgage Relief Program. The program has been one of the most unpopular and widely criticized uses of taxpayer dollars in recent history, essentially forcing taxpayers to pay the mortgages of those who have failed to make payments. Not only does it increase the debt obligations of those who have already been unable to pay, it gives government loans to those who are unemployed and unable to pay. The White House has estimated the program to have approximately a 98% subsidy rate, meaning that the program does not give "loans" as it claims, but grants.

If it becomes law, today's legislation would save taxpayers approximately $900 million dollars, according to the bipartisan Congressional Budget Office.

Yesterday, Congressman Steve Pearce voted for H.R. 830, a bill to end the FHA Refinance Program. This program, designed to help with mortgage refinance, has largely failed: to date, only 44 applicants have been refinanced. If made into law, the legislation is expected to save taxpayers approximately $175 million, according to the CBO.

Pearce described the votes as the latest steps in the long process of addressing a looming national debt crisis. "Unless we want to see massive increases in taxes, inflation, and joblessness, Congress must find ways to stop spending money we don't have," said Pearce.

Pearce has emerged as a leader on the need to address the federal deficit, making presentations about the impact of debt on the floor of the House and in town halls across New Mexico. He has pointed out that the most important aspect of economic recovery is job creation, to increase the number of taxpayers and thereby reduce the deficit. Pearce continues to seek out ways to reach the regulatory and tax balance that will allow small business owners to create jobs and restore economic health.

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