Congressman Rick Larsen's Online Office

Washington, D.C. — Today the House is scheduled to vote on the Emergency Economic Stabilization Act (HR 1424). This legislation includes all the provisions from the financial rescue package Larsen voted for last week and adds a measure to increase the amount of bank deposits insured by the FDIC from $100,000 to $250,000. 

The Senate combined this financial recovery package with a package of tax extensions that was expected to pass Congress this year as a separate bill.  Those provisions include an extension of Washington state’s sales tax deduction, direct funding for rural counties to hire teachers and cops, tax breaks for 20 million middle class families who would otherwise pay the Alternative Minimum Tax (AMT), and renewable energy tax breaks to create thousands of “green” jobs.

U.S. Representative Rick Larsen (WA-02) released the following statement in advance of the House vote:

“When the Bush Administration asked for $700 billion with no oversight and no protections for taxpayers, Democrats in Congress said no way, no how, no blank check.” 

“Congress has made significant improvements to the Administration’s financial rescue package. We cut the $700 billion in half and conditioned any future payments on Congressional review.  We added strong protections for taxpayers to ensure that we get our money back and benefit from any future profit. We included help for families who have been hit hard by the housing crisis to help prevent a projected 2 million foreclosures next year. We provided strong oversight and prohibited any conflicts of interest. And for the first time, we limited executive pay and banned golden parachutes for Wall Street executives who participate.

“In the past week, I have held meetings in Skagit and Snohomish County and here in DC with over 200 constituents to hear how the economic crisis is impacting local businesses and families.

“Due to the credit crunch, small businesses are having a hard time getting the loans they need to start a business or make payroll.   That includes local doctors – one doctor in Whatcom County, who has good credit and can make a large down payment -- has been turned down for a loan by 17 local banks.  This doctor cannot get the loan he needs to start his practice and provide needed care for local families.

“I’ve heard from several local governments that the economic crisis is making it more difficult for them to move forward with building new schools, fire stations and other projects our communities need.

“The credit crunch is slowing down our local construction industry. In Snohomish County, I heard from an electrical contractor I’ve known for years who was just turned down for a loan from a bank he’s done business with for years.

“And as the stock market plummets, seniors’ retirement savings are taking a hit.

“Several constituents have mentioned the similarities between this financial crisis and the one we faced in 1929.  One women wrote my office, “History should teach us that doing nothing is not an option.”

“Another woman who called from Marysville said, “I already lived through the Great Depression, so I know what happens when government fails to act.  Please vote for this bill – no one likes it, but we have to do it.”

“I urge my colleagues to support this financial recovery package to help our economy recover and grow.   If we fail to act, I believe that every family and every community in the country will pay the price in failed businesses, lost jobs, vacant homes, lost retirement savings, and college dreams postponed.

“To quote two of my constituents, ‘please vote for this bill – no one likes it, but we have to do it’.  ‘Doing nothing is not an option.’