• Home
• Issues
  • Prevent War
  • Afghanistan
  • Nuclear Disarmament
  • Federal Budget
  • Environment
  • Immigration
  • Native American
  • More Issues
• Take Action
  • Action Center
  • Contact Congress
  • Grassroots Toolkit
  • War Is Not the Answer
• Join the Network
  • On Quakers
• For Young Adults
• FCNL Green Building
• Donate
• Links

Money Matters: Our Nation's Checkbook and Obama's Budget Blueprint - 3/4/09

Money Matters
Our Nation's Checkbook and Obama's Budget Blueprint
3-4-09

Special Invitation: FCNL is cosponsoring a web seminar on the federal budget and how Obama's budget proposal could help reshape our national priorities with our partner, the Coalition on Human Needs. Tune in (and call) tomorrow (Thursday) from 2 to 3 p.m. EST. Register now at www.bostonconferencing.net/chn.

^I. Introducing the Our Nation's Checkbook Website
^II. President's Budget Holds the Line on Military Spending, Funds New Priorities
^III. Rep. Barney Frank Calls on Obama to Reduce Military Budget by 25 Percent
^IV. House Debating Homeowner Affordability and Stability Plan

I. Introducing the Our Nation's Checkbook Website

Our Nation's Checkbook, a coalition campaign on budget priorities and military spending, now has its own homepage. Visit www.ournationscheckbook.org for:

• Recent articles by FCNL staff members and other authors on the military budget and budget priorities
  
• Military spending in the news
  
• More information about budget priorities from FCNL's perspective - with an emphasis on human needs and the peaceful prevention of deadly conflict
  
• Guides on lobbying your members of Congress about budget priorities.

The economy is in transformation and now is an excellent time for the nation to redefine budget priorities and reduce military spending. Members of Congress will have opportunities to make real changes, but they need you to support and convince them. You can become an advocate for a more equitable economy. Start by visiting www.ournationscheckbook.org.

II. President's Budget Holds the Line on Military Spending, Funds New Priorities

President Barack Obama released an outline of his budget proposal on February 26. He wants to fund the Pentagon at about the same level as last year and spend more to end child hunger, increase energy conservation, reform health care, and double foreign aid. See our first snapshot of Obama's budget proposal.

The president's budget proposal is for fiscal year 2010. Meanwhile, Congress is trying to catch up with old business: an "omnibus" appropriations package to fund the federal government through the rest of 2009. The House passed it last Wednesday with no amendments, and it is expected to go through the Senate this week with few amendments.

III. Rep. Barney Frank Calls on Obama to Reduce Military Budget by 25 Percent

Obama’s budget represents more of the same on military spending, and some members of Congress are pushing for a more substantial review of taxpayer money spent by the Pentagon. Rep. Barney Frank (MA), chairman of the Financial Services Committee, hosted a forum last Tuesday on cutting the military budget by 25 percent. Frank emphasized that the nation cannot talk about fiscal responsibility or paying down the deficit without addressing wasteful military spending. Frank's proposal to cut $160 billion from the military budget is based on research by Lawrence Korb (among others), one of the presenters at the forum. Frank offered a list of possible reductions. Most of the cuts apply to weapons systems that are no longer useful. Frank also counts savings realized by withdrawing troops from Iraq - which Obama has pledged to do by the end of 2011 - and proposes reducing the number of U.S. troops stationed at bases around the world. Frank acknowledged that Congress will need to hear that constituents think rebalancing the budget is important before members will consider approving cuts like the ones he proposes. Might you be one of those constituents? Read more on Frank's forum.

IV. House Debating Homeowner Affordability and Stability Plan

Congress is debating a White House proposal that the president says will help 7 to 9 million people avoid foreclosure. The Homeowner Affordability and Stability Plan would take four approaches to keeping homeowners from losing their homes:

• Refinancing the mortgages of 4 to 5 million homeowners whose loans are guaranteed by Fannie Mae or Freddie Mac.


• Creating a $75 billion "Homeowner Stability Initiative." The Financial Stability Plan that Treasury Secretary Timothy Geithner introduced includes $75 billion to enable lenders to reduce the mortgage payments of families struggling to keep their homes. The object is to lower monthly mortgage payments to 38 percent or less of the borrower's income. This program is expected to reach 3 to 4 million at-risk homeowners.


• Strengthening Fannie Mae and Freddie Mac to encourage low interest rates and responsible lending in the long term. The plan would substantially increase Fannie and Freddie's portfolio so that more homeowners can benefit from government-regulated mortgage plans.


• Allowing homeowners to modify their mortgages through bankruptcy courts if they now owe more than the current value of their home. This is the most controversial component of the plan and something FCNL has lobbied for

The Obama administration argues that this plan will help address the housing market crash at the root of the financial crisis. Economists and members of Congress have mixed opinions about the effectiveness of this proposal, with many concerned that it will help mortgage firms (lenders) more than homeowners.