South Bend, IN—Today at his second annual economic and energy summit in South Bend, Congressman Joe Donnelly called on Congress to pass a second economic recovery package.
 
"Hoosiers are hurting as our economy continues to struggle," Donnelly said.  "We need to give our economy another shot in the arm and provide immediate relief to working families while maximizing the benefit to the economy.  I urge Congress to act quickly to pass an economic recovery package."
 
This past February, Congress passed an economic stimulus package that provided a tax rebate for the low and middle-income families hit hardest by the economic downturn.  More than 130 million families, including 35 million families across the country with individuals who work but make too little to pay income taxes, received a tax rebate.
 
Donnelly is now advocating for a second economic recovery package that would be aimed at helping Hoosiers who are hurting as prices remain high across the board and as workers continue to be hit hard by layoffs and downsizing.  The package would include additional tax rebates, infrastructure investment that would create jobs, and a further extension of emergency unemployment benefits that would target areas with high unemployment rates, such as Elkhart and Howard Counties. 
 
The recent emergency unemployment benefits package—passed in the House with Donnelly's support and signed into law by the president on June 30—made available up to 13 weeks of emergency unemployment benefits for all workers who have exhausted their standard unemployment benefits, regardless of the economic health of their area.
 
"As I travel around the district, I know folks are hurting with high gas prices and rising food and other costs.  It's time for Congress to take further action to get our economy going again.  I look forward to working with my colleagues in Congress so Hoosiers in north central Indiana can start seeing some relief," Donnelly added.

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Elkhart, IN—Today, Congressman Joe Donnelly met with local companies to announce the inclusion of his manufactured housing bill in H.R. 3221, The American Housing Rescue and Foreclosure Prevention Act of 2008, which was recently signed into law. Donnelly’s legislation includes provisions that will raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  Donnelly’s legislation will increase financing options for homeowners looking to purchase a manufactured home for their families. 

“I understand that, despite the great work of our local companies, the manufactured housing industry is in the midst of a nine-year downturn in housing production levels,” Donnelly said.  “With so many Hoosiers’ jobs related to manufactured housing, I have worked to ensure that the federal government fosters a business climate that will allow our local companies to remain competitive and hopefully even grow.  I believe this legislation will not only give the industry a shot in the arm, but it will also help make the Federal Housing Administration’s Title I loan program more financially sound.”

Title I loan limits have not been adjusted for inflation since 1992, and the manufactured housing industry has experienced a decline since.  In 1992, in the midst of the last industry-wide downturn, FHA insured 30,000 Title I loans.  In 2006, that number fell to fewer than 1,500.  In Indiana alone, that number dropped from 377 loans in 1992 to just four loans in 2006.

In June 2007, Donnelly introduced H.R. 2139, The FHA Manufactured Housing Loan Modernization Act, which included provisions to raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  The bill passed the House by voice vote on June 25, 2007. 

Last month, Donnelly’s legislation was included in the comprehensive housing rescue bill that was subsequently signed into law. The manufactured housing provision will raise home-only loan limits from the current $48,600 to $69,678, a dollar amount more likely to cover the cost of a double-family home. As a result, the demand for manufactured homes likely will increase.

“The manufactured housing industry plays a critical role in helping Americans achieve the dream of homeownership by providing them with affordable options for housing. This legislation is beneficial to Americans seeking the economic advantages homeownership provides and also to the manufactured housing industry by increasing the demand for affordable, quality manufactured homes,” Donnelly added.

“The manufactured housing industry would like to thank Congressman Donnelly for his work to raise the FHA-insured Title I loan limits for manufactured homes that are placed on leased land.  This will help increase financing options for homeowners looking to purchase a manufactured home for their family and, in turn, help our industry. Congressman Donnelly has been a tireless advocate on our behalf, and we thank him for this,” said Edward Hussey, Jr., Vice President--General Counsel of Liberty Homes, Incorporated.

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Washington, D.C. - Today, Congressman Joe Donnelly introduced The Biofuels Pipeline Act to promote the construction of new biofuels pipelines. Moving biofuels through pipelines, rather than by rail or truck, would be cheaper and faster and make them more widely available to consumers.

“I am proud to introduce this common-sense legislation, which would make the transport of biofuels much easier,” Donnelly said. “Building the infrastructure needed to better transport biofuels is a necessary part of developing a new energy policy for our country.”

Publicly Traded Partnerships (PTPs), which construct and operate most pipelines, do not build pipelines for biofuels because the tax code actually discourages their construction. Under current law, PTPs do not pay corporate taxes if 90 percent of their revenue comes from the transportation of natural resources like oil, gas and coal.  PTPs do not get the same tax benefit, however, if 10 percent or more of their revenue is generated from the transport of biofuels. Donnelly’s bill would eliminate this disparity, making the same tax benefit available to PTPs regardless of whether their pipelines transport oil or biofuels.

“Because of the unique qualities of biofuels, existing pipelines are not designed to carry them.  Not only does this make it harder for biofuels producers to get their product to market, but it also just doesn’t make any sense to prevent companies with expertise in pipeline construction from building new infrastructure for the distribution of homegrown energy.”  

A companion bill, S.3291, was introduced in the Senate by Senator Tom Harkin of Iowa and Senator Richard Lugar of Indiana.

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