Friday Capitol Letter

In the House ... The House passed legislation Wednesday that seeks to rescue the housing market, but also grants the Treasury Department authority to protect (read: bail out) Fannie Mae and Freddie Mac. The Post called the bill "the most sweeping federal overhaul of the mortgage finance system since the Great Depression." It will provide $4 billion in block grants for local communities to buy up foreclosed properties, as well as tax credits for struggling first-time homebuyers. (Critics note that incentivizing more home purchases at this point may not be prudent). In order to bail out Fannie and Freddie (and, notably, their shareholders), the bill also raises the ceiling on the national debt to $10.6 trillion. The bill's supporters now seek final approval by the Senate. President Bush rescinded his veto threat, essentially insuring the bill will become law. The House Armed Services Committee reviewed the military's "Don't Ask, Don't Tell" policy Wednesday. The hearing comes as Rep. Ellen Tauscher introduced a bill that would repeal the policy. A recent Washington Post/ABC News poll found that 75 percent of respondents supported allowing gays to serve openly in the military, up from 62 percent in 2001 and 44 percent in 1993. Democrats failed for the third time Thursday to move a measure forward that would release oil from the Strategic Petroleum Reserve. Despite picking up 37 votes, and passing 268-157, it failed to pick up the two-thirds majority necessary to clear a procedural hurdle.

In the Senate ... A bill that would have given the government new authority to rein in oil speculators failed a Senate provisional vote 50-43, failing to garner the 60 votes required to overcome a GOP filibuster. Republicans contested that the bill should contain a provision for offshore drilling and oil shale field development in the West. Republican Senator Jim DeMint said Wednesday said he wants propose an amendment to the Housing bill that would prevent mortgage companies from lobbying Congress. He threatened to the stall senate with procedural delays until his bill was brought for a vote. It's currently scheduled to be voted on on Saturday. Attorney General Terry Goddard and Senate Majority Leader Harry Reid gave testimony on polygamy related crimes Thursday to the Senate Judiciary Committee. "The lawless conduct of polygamous communities in the United States deserves national attention and federal action," Reid said.

-- Bobby Allyn

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