Washington, D.C.  – U.S. Representative Charles W. Boustany, Jr. (R-Lafayette) today cosponsored legislation to forgive the 2005 Community Disaster Loans (CDL) that parish and local governments received following Hurricanes Rita and Katrina.  In October 2005, both houses of Congress approved and President Bush signed the Community Disaster Loan Act of 2005 (CDLA), which provided for "special" community disaster loans to local governments so that they could continue to provide essential services in the aftermath of Hurricanes Rita and Katrina.  

“Community Development Loans were essential in helping local communities in Louisiana stay operational following Hurricanes Rita and Katrina,” Boustany said.  “We should continue to assist local governments get back on their feet, not burden them with increased loan debt.”

Under the legislation introduced today, President Bush would have the authority to forgive the Community Disaster Loans that were approved in October 2005.  From the beginning of the CDL program in August 1976 through September 30, 2005, over $225.7 million, or 97%, of CDL loans have been cancelled.

“In the past, our government has forgiven Community Disaster Loans for significant catastrophic incidents,” Boustany added.  “Hurricanes Rita and Katrina should not be treated differently, and I urge the President and my colleagues in Congress to act on this legislation.”