March 18, 2009 NewsletterIn this issue:Oberstar Acts to Ensure Recovery Funds Are Used WiselyHouse Moves to Address Foreclosure Crisis Northern Lights Express Awarded Grant Oberstar Acts to Ensure Recovery Funds Are Used WiselyCongressman Oberstar, chair of the House Transportation and Infrastructure Committee, is using his leadership to ensure that all states and agencies receiving funds from the recently passed economic recovery package use those funds appropriately.“I am going to make certain the part of the recovery package that comes from our committee is used to create jobs and stimulate economic growth,” said Oberstar. “Americans need to know their tax dollars are being used wisely. Every 30 days, states will report where the money is being spent and how many jobs are being created and my committee will follow up with hearings on this issue.” The House Transportation and Infrastructure Committee has jurisdiction over more than $64 billion of the economic recovery package, funding highway, transit, and water infrastructure projects. Earlier this month, the Committee sent out hundreds of letters to recipients, including all governors, transit agencies, and metropolitan planning organizations, outlining the need for transparency and accountability and pointing out key requirements that must be met--namely that the funds be used as soon as possible on projects that create jobs. The Committee asks governors to certify in part that: “the funds will be used to create jobs and promote economic growth”; “the state will maintain its effort with regard to state funding for transportation projects”; and “the infrastructure investment has received the full review and vetting required by law,” in addition to other requirements. These stipulations represent the product of hours of debate in the Transportation Committee, in which Congressman Oberstar repeatedly pushed for the oversight provisions to be included. “These requirements should come as no surprise to any practitioner of infrastructure investments,” Oberstar said. In addition to setting preconditions on the economic recovery money, Oberstar is also demanding detailed information about exactly where the money is being invested and the amount of jobs it is expected to create. Specifically, recipients are required within 45 days of the enactment of the recovery package to submit to the Committee project information, including a detailed list of projects, the total cost, and rationale for each project. They are also required to submit the number of jobs, indirect or direct, created or sustained by the funds. The Committee is expected to review the reports during an oversight hearing on the implementation of the Act next month. House Moves to Address Foreclosure CrisisEarlier this month, the U.S. House passed the Helping Families Save Their Homes Act, legislation that will help many struggling homeowners avoid foreclosure. The Act is part of a flurry of new legislation under consideration in Congress aimed at helping families weather the recession.“We need to keep families in their homes,” Congressman Oberstar said. “When a house is foreclosed upon, everybody loses--the family, the bank, and the community. This bill will help prevent that worst-case scenario in cities across the country.” The bill is structured to allow bankruptcy courts to modify the terms of a mortgage on a primary residence, making it more likely that families facing immediate foreclosure will be able to stay in their homes on a newly-negotiated contract. “We need to make sure that people who can afford to continue making payments under the terms of a modified mortgage are given that chance,” Oberstar said. The legislation also forces banks and homeowners of troubled mortgages to attempt to renegotiate the terms of their mortgage for 30 days prior to filing for bankruptcy. “This gives some leverage to the homeowner who is in trouble, and the bank will have to at least try to work out a deal which benefits both parties. If they don’t, the homeowner can file for bankruptcy under Chapter 13. While Chapter 13 is a costly process for both parties, it will address rising rates of foreclosure by keeping people in their homes,” said Oberstar. “The bill gives homeowners the same bankruptcy protections that are currently afforded to the owners of lake homes and yachts,” said Oberstar. The bill includes other reforms aimed at helping struggling families, including:
Northern Lights Express Awarded GrantIn addition to taking a leading role in the crafting of an economic recovery package, the House Transportation and Infrastructure Committee, under the gavel of Chairman Oberstar, has also been working to advance Oberstar’s vision of creating a 21st Century transportation system aimed at moving people and goods more efficiently and quickly.Part of Oberstar’s vision includes an increased investment in high-speed rail, and that vision came closer to reality last month when the Federal Railroad Administration awarded the State of Minnesota a grant to conduct an environmental impact study on the proposed Duluth to Minneapolis high-speed rail line, dubbed “Northern Lights Express.” The study is a necessary step in the process of creating the transit line, and Oberstar expects a positive assessment. “I expect this study to demonstrate a positive impact on the environment,” said Oberstar. “It will take cars off the road, and reduce air pollution and fuel consumption. Because the Northern Lights Express will operate on existing rail lines, it will only have a minimal impact on forests and wetlands.” The rail line is touted as a viable alternative to automobile transportation between the Minneapolis metro area and Northern Minnesota. Providing that alternative, says Congressman Oberstar, is key not only to improving our transportation system, but also helping to reduce our dependence on costly foreign oil. “This is the kind of project that will save energy and alleviate congestion on our highways. With high fuel prices, we need to do all we can to give consumers alternatives to driving,” Oberstar said. According to Oberstar, if public transit or alternative forms of transportation can help take one out of every ten cars off the street, the U.S. would reduce its dependence on oil by more than 40 percent--roughly equal to all the oil imported each year from Saudi Arabia. And that, Congressman Oberstar says, will reduce demand, lower gas prices for everyone else, and help move the country onto more sustainable forms of transportation. The Northern Lights Express Passenger Rail Alliance hopes to begin engineering work on the rail line next year. If all goes to plan, the first train could be operational by 2012. |
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