Community Disaster Loan Act of 2005
COMMUNITY DISASTER LOAN ACT OF 2005 -- (House of Representatives - October 07, 2005)
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Mrs. MALONEY. Mr. Speaker, I am not going to object, even though this legislation is flawed in many ways, as my colleague pointed out, because we all understand the tremendous need for the people in the gulf region. I am not a Representative from the gulf coast, but I certainly understand the impact on tax revenues after a disaster. Repealing the $5 million cap on community disaster loans is something that I have been working on along with the New York delegation, ever since New York suffered at least $5 billion in lost tax revenues following 9/11 and the loss from the gulf region maybe more.
The bill before us lifts the $5 million cap, but it adds a provision that has never, ever been seen before with these loans. It prohibits, literally prohibits, the Federal Government from forgiving any part of these loans. This is incredibly important because there has been a long history of canceling these loans after they are given.
I have here with me, Mr. Speaker, a list of all the previous disaster loans that have been forgiven. So why are we now putting this terrible burden on the people in the gulf region?
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When you think about it, communities that have been devastated are not going to be in the position to be able to afford to pay back these loans. They cannot even afford their operating expenses. They are laying people off. How in the world is a city like New Orleans going to be able to afford to pay this back when it will be absolutely years before their tax base returns to normal?
Mr. Speaker, Congress is not requiring Iraq to pay back the money we are giving them. Why are we making the people of the gulf coast pay us back now? It is terribly unfair, and I would say unpatriotic. Why are we giving a priority to contractors in Iraq over the people in Louisiana, Mississippi, and Alabama? Again, we are not being required to pay back in Iraq, but now they are telling these devastated communities and people that they have to pay it back.
Mr. Speaker, this morning, along with the gentleman from Louisiana (Mr. Jefferson) and the gentleman from Louisiana (Mr. Melancon) and others, we have introduced H.R. 4012. This bill would remove the $5 million cap, give assistance grants and allow for these loans to fully cover the expenses of the towns, counties, and parishes up and down the coast. We have already appropriated at least $84 billion in aid for Katrina. We have identified the need. Why in the world are we setting up in this legislation new restrictive qualifications for the people in the gulf coast?
So I join my colleague in his efforts and other efforts on both sides of the aisle to remove this in the future. But it is wrong, in my opinion, to place this burden now on the people of the gulf coast.
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