Update from Senator Bob Corker: September 20, 2013

Press Release

Senator Corker and Senator Mark Warner, authors of the Housing Finance Reform and Taxpayer Protection Act (S. 1217), emphasized this week that despite being major components of the 2008 financial crisis, Fannie Mae, Freddie Mac and our system of housing finance have been left completely unaddressed. In an op-ed published in American Banker, Corker and Warner wrote, "It is past time to address this unfinished business remaining from the financial crisis. The bill we are advocating along with eight other members of the Senate Banking Committee -- a strong coalition that continues to grow -- can usher in a 21st-century model of housing finance that will create a dramatically better model for responsible, sustainable homeownership in this country." Read more here.

Corker and Warner also participated in a video Q&A session this week about the growing momentum around reforming Fannie Mae and Freddie Mac with Zillow Chief Economist Stan Humphries.

"As momentum grows in Washington for bipartisan housing finance reform, it's important that we continue to speak directly with the American taxpayer and millions of borrowers who have a lot riding on overhauling Fannie Mae and Freddie Mac," said Corker.

A video of the interview, entitled Zillow Presents: A Conversation About GSE Reform with Senators Bob Corker and Mark Warner, Facilitated by Zillow Chief Economist Stan Humphries, is available here. Follow the continuing discussion on social media by using the hashtag #GSEReform.

CBO Report Reinforces Need for Entitlement Reform

On Tuesday, Senator Corker said the Congressional Budget Office's Long-Term Budget Outlook reinforces that entitlement spending is driving our nation's debt to unsustainable levels. According to the non-partisan report, federal spending for the major health care programs and Social Security would increase to a total of 14 percent of Gross Domestic Product by 2038, up from under 10 percent today, and total federal spending will grow rapidly as a percentage of GDP, reaching a record 26 percent in 2038.

"This report shows once again that entitlement spending is driving our nation's debt to unsustainable levels and crowding out productive investments our country could be making in things like infrastructure, research and development, and national security. As CBO notes, the typical Medicare beneficiary today receives about $200,000 more in benefits over their lifetime than they have paid into the Medicare system. Fixing this imbalance and others in Medicare and Social Security so they are strong and solvent, as Senator Alexander and I propose in the Fiscal Sustainability Act, is the only way to put our country on a sound fiscal path that will allow for continued growth and prosperity," said Corker.

In February, Senator Corker was joined by Senator Lamar Alexander in introducing the Fiscal Sustainability Act (S. 11) to reduce the growth of entitlement spending (Medicare, Medicaid and Social Security) by nearly $1 trillion in the next decade in order to improve the programs' solvency. The bill incorporates many of the recommendations made by President Obama's Debt Commission (Simpson-Bowles) as well as by former Republican Senator Pete Domenici and Alice Rivlin, budget director for former President Clinton.

Obama Administration Standing in the Way of Thousands of New Jobs

Five years after TransCanada's initial application for the Keystone XL pipeline, Senator Corker said yesterday that the Obama administration is now the only thing standing in the way of thousands of new jobs and access to a large supply of North American energy from completion of the pipeline. The State Department has yet to approve construction of the final section of the pipeline, which, if completed, will have the capacity to transfer more than 800,000 barrels of oil per day from Canada to refineries on the Gulf Coast of the U.S.

"Despite five years of rigorous review and strong public support for completion of the pipeline, the Obama administration is now the only thing standing in the way of thousands of American jobs, with the potential for many more, and access to a large supply of North American energy. The president's vague climate criteria appear to ignore the findings of exhaustive, concrete environmental and economic development analysis that demonstrate the benefits we would reap from this project, which would also strengthen ties with Canada, our largest trading partner. I urge the president and Secretary Kerry to recognize the value of the pipeline and approve its completion as soon as possible," said Corker.

In July, President Obama made dismissive comments about the benefits of the Keystone XL pipeline and in June announced a decision on approval of the pipeline would be based upon a new climate standard. A draft State Department report this year estimates the pipeline would support 42,000 jobs. The report also concluded there would be no significant environmental impact along the pipeline's proposed route and other methods of moving the oil could generate significantly more carbon. For example, according to the report, rail transport of the oil to Canada's West Coast would cause a 17 percent increase in carbon emissions versus the pipeline.

Harris Interactive revealed in a June 3 poll that 82 percent of registered voters believe the pipeline would benefit the United States.

In the 112th Congress, Corker cosponsored legislation to prevent further delay of the pipeline and to authorize the project under Congress's authority enumerated in the Commerce Clause of the U.S. Constitution, Article 1, Section 8.

Celebrating Constitution Week Across Tennessee

Tuesday marked the 226th anniversary of the signing of the United States Constitution, and to celebrate the occasion, students in 11 Tennessee schools participated in Constitution Week events sponsored by Senator Corker's office.

Senator Corker's field representatives delivered interactive presentations to students, showing a 5-foot replica of the Constitution and discussing its importance in every American's life.

"The wisdom our Founding Fathers showed in crafting such a fundamental and elegant document that has provided the foundation for our government and our country for 226 years is really incredible when you think about it," said Corker. "I hope the students who attend our Constitution Week events across the state come away wanting to learn more about our country's history, values and system of government. Our country faces a number of challenges in the coming decades, and it's important that young Americans understand the document that has guided our country since its founding."

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