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Joined Nov 11, 2007
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Leveraging a Hurricane: The real story behind the political theater over disaster relief.

This week the left-wing press has been attacking House Majority Leader Eric Cantor for holding disaster relief funding “hostage.” A more accurate way to put this is that Senate Democrats won’t approve new funding for disasters unless they get the funding they want for corporations that make electric cars.

Here’s the story: In June, House Republicans passed the 2012 Homeland Security appropriations bill, which included an amendment adding $1 billion to the Disaster Relief Fund of the Federal Emergency Management Agency (FEMA). In a sensible move for taxpayers, the amendment offsets this new disaster funding by cutting spending on the Advanced Technology Vehicles Manufacturing Loan Program. This may ring a bell with readers as the funding conduit for one of Washington’s adventures in crony capitalism.

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One reason the House bill has less funding for Democratic priorities is because, even before the hurricane, Republicans had decided that the President’s budget didn’t have enough money for the Disaster Relief Fund. So they funded it at $850 million above the President’s request. Then as they realized that the damage in places like Joplin, Missouri would put additional strain on the fund, the GOP added the amendment that provided still more disaster assistance and cut funding for Mr. Biden’s beloved electric cars.

The White House hasn’t asked for more funding, though White House budget director Jacob Lew wrote to lawmakers Thursday suggesting it could be well north of $5 billion. But so far Mr. Cantor is being blamed for opposing disaster relief because he has been trying to spend more than the President, and to place that above other spending priorities.

Read the whole story here.

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