Senate Dems propose another $15 billion to fight foreclosures

"We are facing a challenging budget environment, but this is the right time to make smart investments in strengthening our communities, putting more construction workers back to work and bolstering the economy," Reed said. "This initiative will provide a flexible source of funding to help local communities leverage federal dollars to effectively address vacant and blighted properties."

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Since 2008, the government has been authorized to make a little more than $7 billion in grants to states to aid in the redevelopment of foreclosed property. These grants were made under the Neighborhood Stabilization Program (NSP), run out of HUD.

Within that program, $4 billion was authorized under a 2008 law, another $2 billion was added under the 2009 stimulus bill and $1 billion more was added under the 2010 Dodd-Frank law.

Reed's bill essentially expands the NSP by more than 200 percent — $10 billion of the new money would be distributed to states under a formula similar to the one used by NSP, and another $5 billion would be distributed through "competitive grants."

Reed said the bill could mean another $43 million for Rhode Island, nearly double the $26 million his state has received under NSP. Under the bill, each state would get a minimum of $20 million in foreclosure aid.

The bill would also expand the NSP program by allowing grants to be used for the redevelopment of commercial properties.

Reed's bill is sponsored by 10 other Democrats, including Majority Whip Dick DurbinDick DurbinDem wants hearing on EpiPen price hikes Legislators privacy fight coincides with FCC complaint Syria activists cheer Kaine pick MORE (Ill.), Senate Judiciary Committee Chairman Patrick LeahyPatrick LeahySanders, liberals press Obama to expand closure of private prisons Police union: Clinton snubbed us Congress saving the past for the future MORE (Vt.) and Democratic Policy and Communications Center Chairman Charles SchumerCharles SchumerRubio primary challenger loans campaign M Is Trump deliberately throwing the election to Clinton? Why Khizr Khan needs a Democrat in the White House MORE (N.Y.). Other sponsors are Sens. Daniel Akaka (Hawaii), Richard BlumenthalRichard BlumenthalAirlines brace for boost in travel volumes over Labor Day Will Obama protect the Atlantic’s Grand Canyons? Dems push airlines on IT systems amid technical glitches MORE (Conn.), Mark BegichMark BegichRyan's victory trumps justice reform opponents There is great responsibility being in the minority Senate GOP deeply concerned over Trump effect MORE (Alaska), Sherrod BrownSherrod BrownLame duck TPP vote could be disastrous for Dems—and America The Trail 2016: Her big night Kaine as Clinton's VP pick sells out progressive wing of party MORE (Ohio), Al FrankenAl FrankenLiberal hypocrisy on the free exchange of ideas Winners and losers of the Dem convention Party unity overcomes chaos...and the Bernie-or-Bust crowd MORE (Minn.), Jeff MerkleyJeff MerkleyDem anxiety hangs over Clinton Kaine as Clinton's VP pick sells out progressive wing of party Unions want one thing from Hillary tonight: A stake in TPP’s heart MORE (Ore.) and Sheldon WhitehouseSheldon WhitehouseBanking association backs financial transparency bill Shift in care could reverse the opioid epidemic Dems ask Cruz to hold hearing on Trump's Russian hacking remarks MORE (R.I.).

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