The Senate is moving toward taking up a measure to stem the housing slump that is fueling the economic downturn, but a partisan spat over process and substance is threatening its prospects for passage.
The two sides have yet to come to an agreement on the terms of legislation dealing with the housing crisis as well as which Democratic and Republican amendments can be offered during the upcoming floor debate, senators said Thursday.
A procedural standoff would make it likely that Majority Leader Harry Reid (D-Nev.) will move to limit amendments on the Democratic package and force an end to floor debate, which requires 60 votes. Such a move would probably produce a vote largely along party lines, making it difficult for Democrats to win the support of nine Republicans, which is needed to advance the measure.
A legislative deadlock would provide new fodder for the election-year fight over which party is better suited to deal with economic concerns that are the biggest issues on voters’ minds.
A procedural vote to take up a housing bill is expected to occur later Thursday, but whether the measure can surpass additional hurdles remains unclear.
Reid told reporters that he is open to considering amendments from both sides, but wants the proposals to deal with the housing crisis.
“If [Republicans] want to honestly legislate like we’ve done around here for years,” Reid said, “then, sure, we’ll be happy to talk about amendments.”
“We have solid amendments to help grow the economy and protect homeowners and those who are working toward homeownership,” said Don Stewart, a spokesman for Senate Minority Leader Mitch McConnell (R-Ky.) “The majority wants to pick all of the amendments rather than allowing votes on ours.”
Senate Republican leaders plan to announce later Thursday their own economic package that would “grow our economy, prevent tax increases and stabilize the housing market,” according to a GOP press release.
The main sticking point over the Democratic bill is a provision aimed at allowing bankruptcy judges to modify mortgages for people who are at risk of losing their homes. Republicans, joined by the banking industry, contend that the provision would drive up overall borrowing costs.
At a White House news conference Thursday, President Bush criticized Democrats on the bankruptcy provision, saying their bill “would do more to bail out lenders and speculators than to help American families keep their homes.” He called on Congress to pass legislation to modernize federal housing agencies instead.
“By taking these steps, we can help struggling homeowners and help our economy weather the difficult time in the housing market,” Bush said.
Democrats said the relatively hands-free approach the GOP is advocating would do nothing to stem a looming recession.
“This is the typical Republican approach: Let the market work,” said Senate Majority Whip Dick Durbin (D-Ill.), the author of the bankruptcy provision. “The housing industry is flat on its back and President Bush says, ‘Stay the course, let’s wait.’ ”
Democrats said that if they cannot advance their measure, they would be unwilling to strike the bankruptcy provision. Durbin said dropping the bankruptcy provision probably is not enough to satisfy the White House, which has promised a veto over several other items in the bill as well.
“When you get down to it, the other things in the bill the administration opposes are really the heart of the bill,” he said.
