Financial Services Appropriations Bill Focuses on Restoring Regulatory Agencies Responsible for Protecting Consumers, Boosting Job Creation

Washington, D.C. – Congresswoman Rosa L. DeLauro (CT-3) praised the fiscal year 2010 Financial Services Appropriations Bill for its efforts to rebuild the regulatory agencies tasked with protecting consumers, taxpayers and investors, as well as to spur job creation through small business loans and making capital and financial services available to underserved communities. The bill was approved late Tuesday [7 July] evening by the full Appropriations Committee and will now be debated by the House, following passage there, the legislation will also need to be voted on by the Senate, approved by both chambers and signed by the President.

“In recent years many of our regulatory agencies – whether responsible for product safety or overseeing the financial markets – disregarded their responsibility to protect consumers, taxpayers and investors. This bill, coupled with new leadership, takes strong steps to reverse that disregard and helps to rebuild these agencies,” said DeLauro. “Additionally, this bill recognizes that small businesses are the lifeblood of our economy. And it makes critical investments in the programs that help them succeed, including programs in Connecticut, such as the Community Economic Development Fund, the Farmington Technology Incubator, and the Women’s Business Development Center aimed at strengthening job growth by expanding small business services to help our entrepreneurs.”

The bill totals $24.15 billion in discretionary spending for fiscal year 2010 – $1.59 billion increase over 2009 and nearly $76 million less than the President’s request. This includes $13.4 billion for the Department of the Treasury – $758.6 million above 2009.

As in previous years, DeLauro advocated for the inclusion of an inverted domestic corporation provision, which prevents domestic corporations that incorporate in tax havens to avoid paying U.S. taxes from receiving federal contracts.

Cuba: The bill seeks to ease Bush-era restrictions hampering the ability of U.S. companies to export agriculture goods to the island nation by making clear that the term “payment of cash in advance” in U.S. law means that payment must be made before agricultural products are unloaded in Cuba and not before a ship leaves a U.S. port as Treasury has interpreted the law in recent years. According to the U.S. International Trade Commission, in 2008, U.S. agricultural sales to Cuba reached $708 million. Yet, according to the Commission, with restrictions lifted U.S. exports to Cuba in 2008 would have been approximately $924 million to $1.2 billion.

TARP: requires the Treasury to report quarterly on implementing the recommendations of the Special Inspector General for the TARP, the Congressional Oversight Panel and the Government Accountability Office.

Securities and Exchange Commission (SEC): $1.036 billion for the SEC—$10 million more than the budget request and $76 million more than in FY 2009 – which will allow the hiring of approximately 140 more lawyers, analysts and investigators, in addition to the 140 hired this year, to work on detecting and prosecuting financial misconduct, as well as gives the SEC Inspector General a separate budget, independent of the SEC management.

Consumer Product Safety Commission: $113 million – $6 million above the President’s request and $8 million over 2009 – to implement the product safety legislation strengthening the CPSC; increase product screening at ports; and address problems with imported drywall from China.

Small Business Administration: $848 million – $236 million over 2009 – to support $28 billion in lending to small businesses

Micro-Loan Program: $10 million – through this program the SBA makes funds available for very small loans to start-up, newly established, or growing small business concerns. The program also received $24 million in funding through the American Recovery and Reinvestment Act.

Community Development Financial Institutions Fund: $244 million, to help supply credit to disadvantaged communities, which will help fill the void that has resulted from the overall decline in bank lending activity. On average, each dollar invested in the Fund has leveraged at least fifteen dollars in additional private investment in underserved communities.

Of interest to Connecticut, the bill includes funding for the following projects:

Community Economic Development Fund (Meriden), $250,000: to support the expansion of the Small Business Institute and individualized technical assistance services to existing small businesses throughout Connecticut.

Farmington Technology Incubator, $150,000 (University of Connecticut): to develop new biotechnology incubator facilities that will promote the success of start up technology companies with growth potential and Connecticut’s economic diversification to promote job creation for the state’s residents.

Women’s Business Development Center (Stamford), $200,000: to stabilize the center’s existing operations and expand its scope of services to constituents who have lost their jobs or entrepreneurs whose businesses are struggling as a result of the recession.