TheWeekInCongress.com
Week Ending October 7, 2005
S.1858 A bill to provide for community disaster loans.
BRIEF
A bill, HR 3673, was passed by Congress and signed on September 8, 2005 as Public Law 109-62. The law was the second supplemental passed by Congress to fund the Hurricane Katrina aftermath and provided $51.8 billion in off-budget tax dollars.
This bill would provide for the transfer of up to $750 million of the $51.8 billion to the Disaster Assistance Direct Loan Program to provide direct loans to local governments so they may provide essential services. The funds must subsidize gross obligations for direct loan principals not to exceed $1 billion. The bill overrides existing legislation by allowing for loans greater that $5 million, provides that $1 million can go to administering the loans and that the loans may not be cancelled.
Sponsor: Senator David Vitter (R-LA)
Vote: Passed Senate by Unanimous Consent; Passed House without objection October 7, 2005.
Cost to the taxpayers: Provides for transfer of funds already committed under HR 3673. PL 109-62.
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MORE INFORMATION
This Act may be cited as the `Community Disaster Loan Act of 2005'.
(a) Essential Services- Of the amounts provided in Public Law 109-62 for `Disaster Relief', up to $750,000,000 may be transferred to the Disaster Assistance Direct Loan Program for the cost of direct loans as authorized under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5184) to be used to assist local governments in providing essential services: Provided, That such transfer may be made to subsidize gross obligations for the principal amount of direct loans not to exceed $1,000,000,000 under section 417 of the Stafford Act: Provided further, That notwithstanding section 417(b) of the Stafford Act, the amount of any such loan issued pursuant to this section may exceed $5,000,000: Provided further, That notwithstanding section 417(c)(1) of the Stafford Act, such loans may not be canceled: Provided further, That the cost of modifying such loans shall be as defined in section 502 of the Congressional Budget Act of 1974 (2 U.S.C. 661a).
(b) Administrative Expenses- Of the amounts provided in Public Law 109-62 for `Disaster Relief', up to $1,000,000 may be transferred to the Disaster Assistance Direct Loan Program for administrative expenses to carry out the direct loan program, as authorized by section 417 of the Stafford Act.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.
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