Newly Elected Republican Says Government Should Be Less Involved In Disaster Relief

By Igor Volsky/Think Progress

Newly-elected Rep. Trey Radel (R-FL), who ran his campaign on a pledge to cut spending and reduce the debt, said on Friday that he would vote to increase borrowing authority for the National Flood Insurance Program by $9.7 billion to help victims of Hurricane Sandy, but argued that disaster relief is best left to the private sector.

Appearing on CNN, Radel explained that government does have a role to play in the aftermath of natural disasters, but argued that people are too dependent on Washington for federal funding:

HOST: Will you in favor of the $61 billion Sandy aid bill today?

RADEL: Yes, I will. This is the national flood insurance program, it is something promised by the federal government and we need to release those funds to the people that are suffering in the northeast. … But ultimately, what we need to be doing, at the federal level, is weaning people off the federal government and allowing this not to just be left up to the states, but ultimately up to the private sector.

HOST: So you want to pass FEMA off to the private sector? You don’t think the government should be involved in federal relief at all?

RADEL: It should in some areas, but this is a case of insurance, just like in Florida, where you even have state-run programs that are out of control such as citizens where again, I’m sure you’ve covered many times, it ends up where middle class families end up paying for insurance for multimillionaires to have their homes on the beaches. It’s just not fair. We need to allow it to be in the private sector.

Watch it:

The private sector does play an important role in relief, but it cannot single-handedly finance or organize national disaster preparedness. For instance, while Walmart donated $25 million to help victims of Hurricane Katrina, the company’s aid made-up only a small fraction of thehundreds of billions of dollars the federal government spent in the aftermath of the tragedy. FEMA director Craig Fugate has embraced a “whole community approach to emergency management nationally,” integrating “all aspects of a community (volunteer, faith, and community-based organizations, the private sector, and the public, including survivors themselves).” But ultimately, only the federal government can coordinate and organize disaster response that spans across state lines and inflicts billions of dollars in damage.

Washington is even more directly involved in providing flood insurance to vulnerable populations. The federal government established the National Flood Insurance Program in 1968, after private insurers deemed the peril of floods “uninsurable,” noting that they couldn’t possibly “earn excess premiums to cover their cost of capital (they have to pre-fund losses), whereas the U.S. government can easily borrow money to cover catastrophic flood events after they occur.” It can also require homeowners in flood hazard areas to purchase insurance and avoid the problem of adverse selection (wherein only high-risk homeowners buy coverage) that private insurers face.

The program is far from perfect, but if it’s disbanded, Randel’s Florida constituents, some of whom undoubtedly live in flood-prone areas, would be left with no insurance at all.

House Republicans Seek Auto Industry Cuts To Cover For Disaster Relief Funds

By Tyler Kingkade/Huffington Post

WASHINGTON -- House Republicans rolled out their plan to fund disaster relief in Majority Leader Eric Cantor's (R-Va.) district, but at the cost of almost half of remaining loans set aside to help the American auto industry.

Included in their plan for a continuing resolution to fund the government past Sept. 30 is a provision to cut $1.5 billion of the $3.4 billion in remaining funds for low-cost loans -- sometimes referred to as "Section 136 loans." The money would be reused to pay for aid to states as they clean up after recent natural disasters like Hurricane Irene and the rare east coast earthquake -- both of which greatly affected Cantor's Virginia district. The cost of disaster assistance is usually added to the budget deficit instead of offset with cuts.

Democrats and an auto industry expert warn the funds Cantor picked to pay for disaster aid is currently supporting a successful program that has pulled manufacturing jobs back from other countries and helped keep the industry alive around the eastern Midwest. Taking the money away would jeopardize that program.

"We absolutely need to fund disaster recovery assistance in Eric Cantor's district and all areas affected by Hurricane Irene and the recent earthquake, but that doesn't make it ok to kill American manufacturing jobs," Rep. Gary Peters (D-Mich.) said in a statement to The Huffington Post. "The Greater Detroit area that I represent has been hit the hardest by the recession and I strongly oppose the Republican plan to kill our jobs and delay our recovery.”

The loan program is part of a $25 billion initiative within the Energy Independence and Security Act of 2007, which was a broad plan Democrats pushed to improve energy efficiency in everything from fuel standards to light bulbs.

Even as Republicans have sought to encourage "Made in America" products, experts say this is one of the programs that has achieved bringing manufacturing jobs to the U.S.

The loans for the auto industry were meant to help encourage new manufacturing plants in the U.S. and re-equip existing facilities, as well as drive the companies toward making more fuel-efficient vehicles.

It was adding some match-type money that would be dedicated to this and give the industry some additional incentive instead of having to wait until the consumer demand; sort of putting the horse out in front of the cart to pull it along," said Kim Hill, associate director of research at the Center for Automotive Research in Ann Arbor, Mich.

One of the direct results was that Ford quit manufacturing their Ford Focus in Mexico.

"All of the Focus production is now here in Michigan," Hill said. "Nissan is building their Leaf in Tennessee. I don't think that program would've happened in the United States if it weren't for this type of money."

Democrats told The Huffington Post the cut to the loan program would have an impact in manufacturing across the country, not just the auto industry in Michigan.

"If the $1.5 billion were cut it would mean that those with applications in the early stages of approval would not get funding," a Democratic Hill source said. "It would mean that thousands of jobs already in the pipeline would not be created. It is difficult to predict the kind of ripple effect this could have throughout the auto industry and other manufacturing sectors, but this will absolutely damage progression toward improving CAFE standards and limit the ability of American manufacturers to compete on a global playing field."

Hill said the idea of defunding the program to pay for disaster is shortsighted. "Where we sit here in Michigan -- that actually was disaster relief. This region of the country was going to fall apart if some of these companies failed," Hill said.

The program didn't simply help the auto industry, Hill said, but there's a number of other states, including many in Speaker John Boehner's home state of Ohio, who are the center of major parts suppliers. As Hill explains it, the auto makers don't create a car in a vacuum. In some cases, they are reaching out to 1,000 different suppliers.

The Government Accountability Office found this program is already understaffed and as such there has been a real problem distributing the funds leaving some companies barely hanging on. For instance, Chrysler Group, LLC., has been waiting on a $3 billion loan for three years now.

This is only one way Republicans are chipping away at legislation passed to improve energy standards in the U.S. The GOP has long been opposed to elements of the Energy Independence and Security Act.

House Republicans pursued the "Light Bulb Freedom of Choice Act" which would've repealed the phase-out of the old high energy-consuming light bulbs, in favor of energy efficient ones. Since that effort has stalled, some Republican-controlled states have tried to slide in their own legislation on light bulb "freedom."

The remaining money in the loan program could all be used if the $3.9 billion in pending requests are granted, Democrats said.

The Hill reported House Minority Whip Steny Hoyer (D-Md.) indicated Thursday that Democrats would be widely opposed to cutting this funding from the loan program in the Department of Energy.

"What we are doing, in my view ... is undermining a specific item in the current scheme of things that is creating jobs," Hoyer said.

Cantor's office did not respond when asked for comment.

On Thursday the Senate passed their version to fund disaster relief without any offset by a vote of 62-37. If a resolution is not made by Sept. 30, FEMA would have to delay aid to disaster victims.

Despite Saying ‘America’s Priorities Should Come First,’ Senate GOP Blocks Emergency Disaster Relief

By Tanya Somanader


The unprecedented number of natural disasters in 2011 have left already struggling states with $36 billion in damages. Hearing calls for aid, Senate Majority Leader Harry Reid (D-NV)responded by bringing a $7 billion relief package before the Senate.

His Republicans colleagues, however,responded by obstructing it. Last night, GOP senators successfully blocked Reid from bringing up the bill for consideration. In need of 60 votes, Reid got 53 votes in favor and 33 votes against. Fourteen senators did not vote, but every single senator who voted against relief was Republican.

Even GOP senators representing states that suffered disaster damage — North Carolina Sen. Richard Burr, Texas Sen. John Cornyn, Alabama Sens. Richard Shelby and Jeff Sessions, and Mississippi Sens. Thad Cochran and Roger Wicker — voted against aid for their constituents. Taking a page from House Majority Leader Eric Cantor’s (R-VA), the Senate GOP refused because the relief was not offset with cuts elsewhere:

– SEN. RAND PAUL (KY): “I plan to insist my fellow senators take a long, hard look at where the funding comes from,” Paul said yesterday before the vote.“Will it be more borrowing on the backs of our children and grandchildren, or will it be from the coffers of our numerous nation-building programs overseas? America’s priorities should come first.”

– SEN. JOHN THUNE (SD): “These are different times. We have got to figure out how to pay for these things,” Thune told reporters last week.

– SEN. JEFF SESSIONS (AL): As ranking member of the Senate Budget Committee, Sessions “believes the Senate should not provide the spendingbefore getting expert advice on the precise need.” “We haven’t carefully examined every penny of it,” he added. Noting that he represents “a state that has suffered” from tornado damage, he still asked “how much more do we need” in aid?

Disaster relief — much like funding to rebuild Iraq — is traditionally not subject to offsets. But only Maine Republican Sen. Susan Collins seemed to take note of that fact. She, Sen. Olympia Snowe (R-MN), Sen. Dan Coats (R-IN), Sen. Roy Blunt (R-MO), and Sen. Scott Brown (R-MA) were the only five to break with their party and vote in favor of the disaster aid.

They, however, will find support from numerous GOP governors who seek aid without offsets. Cantor’s home state Gov. Bob McDonnell (R-VA) rebuked this kind of zero sum thinking. GOP favorite Gov. Chris Christie (NJ) characteristically did not mince words: “Our people are suffering now, and they need support now. And they [Congress].. can figure out budget cuts later.” For now, Christie — and the people’s needs — go unheeded.

GOP Voted For $50 Billion To Rebuild Iraq Without Cuts, Now Insist On Cuts To Offset Funding To Rebuild America

By Tanya Somanader/Think Progress




The recent unprecedented onslaught of natural disasters has left already cash-strapped states with a record $36 billion in damages. Ten different natural disasters have struck in 2011. According to FEMA, damages from Hurricane Irene alone will cost at least $1.5 billion in disaster relief — and the hurricane season isn’t over.

This disastrous year is also the year thatmany Republican lawmakers have also decided to break precedent and demand that much-needed disaster relief be offset with cuts elsewhere in the federal budget.

Yesterday, Senate Majority Leader Harry Reid (D-NV) vowed to quickly usher $6 billion in emergency disaster relief for states through the Senate. However, even as wildfires obliterate more than 1,000 homes in his state, Sen. John Cornyn (R-TX) insisted that those funds be offset because “we can’t keep spending money we don’t have.” Sen. Richard Burr (R-NC), whose state has suffered “millions and millions of dollars” in wind and flood damage from Hurricane Irene, simply demanded that “we’ve got to offset everything“:

“We can’t keep spending money we don’t have,” said Sen. John Cornyn of Texas, where deadly wildfires have charred tens of thousands of acres and destroyed more than 1,000 homes. [...]

“I think we’ve got to offset everything; anything that’s not allocated has got to be offset these days. It shouldn’t delay it,” Burr told POLITICO. “There’s hundreds of billions of dollars of waste, fraud and abuse that could be accessed like that.”

This purist principle did not stop both Cornyn and Burr for voting to fund rebuilding efforts in Iraq without a single offset. Indeed, Cornyn voted against delaying $20.3 billion in Iraqinfrastructure funds even though the late Sen. Robert Byrd (D-WV) noted that such a payment would increase the budget deficit. Overall, the U.S. has spent $44.6 billion in taxpayer funds on rebuilding Iraq through emergency supplemental bills — and not a penny was cut from elsewhere in the budget.

Cornyn and Burr’s position — first espoused by House Majority Leader Eric Cantor (R-VA) — is so callously out of touch that even fellow Republicans are slamming the idea. After enduring serious bipartisan backlash, Cantor is now gun-shy. Calling Reid’s emergency funds bill “unprecedented,” he is not clearly taking a stand against it.