Thursday, September 4, 2008

Why are Taxpayers Funding Foreclosures?

Bosse Stands Up Against Congressional Slush Fund

(Hillsboro) Republican Grant Bosse today called for repeal of the Community Development Block Grant program, which is paying local communities to foreclose on homeowners in financial difficulty. Bosse is adding the nearly $5 billion dollar program to his list of 50 specific federal programs he would eliminate. Bosse's ground-breaking "50 Days, 50 Ways to Cut Federal Spending" initiative has now proposed well more than $27 billion in taxpayer savings.

“Paul Hodes has added $4 billion to this program, to help local politicians buy foreclosed properties,” Bosse said. “That means that banks who made bad loans have less incentive to work with homeowners, and every incentive to sell these properties to big city politicians.”

The Community Development Block Grant programs send out $4.9 billion a year on Congressionally-directed programs, feathering the nests of Congressmen’s local political allies. Bosse would favor a competitive process for any federal development assistance, and take local development decisions out of the hands of Congress.

“Some very worthy projects have received funding under this program over the years. But even a stopped clock is right twice a day,” Bosse added. “Instead of letting Paul Hodes control a $5 billion annual slush fund, let’s leave local development decisions to our cities and towns, and stop subsidizing foreclosures.”

To date, Bosse has proposed more than $27.6 billion in taxpayer savings by eliminating unnecessary federal programs. Bosse’s opponents have combined to offer $0. To learn more about Bosse’s aggressive grassroots campaign, go to

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