In the News

Reiterating his concern that excess bank bailout funds should be used to reduce the federal deficit, Congressman Gerry Connolly voted against passage of H.R. 2847, the Jobs for Main Street Act. 

The $154 billion spending bill, funded by TARP bank bailout funds and increased deficit spending, was promoted by House leadership as a measure to create jobs and further stimulate the economy.  Connolly, however, cited data showing the American Recovery and Reinvestment Act is already working to boost the economy and create jobs. 

“Only one-third of the Recovery Act funding has gone out the door and we have already created 1.6 million jobs and seen net job losses steadily decline from 700,000 in January to only 11,000 last month,” he said.

“While I am sympathetic with the desire of Democratic leadership and many of my colleagues to take further action to stimulate the economy and reduce unemployment, I believe the Recovery Act is working and we must get serious about fiscal discipline to reduce the deficit.  Now is not the time for more spending.  For those reasons, I voted against this legislation,” said Congressman Connolly.

“For each of my 14 years in local government, I balanced the budget.  And it’s time that Congress gets serious about doing the same.  I am sympathetic to the fact that some of my colleagues – Republicans and Democrats – go home to communities facing unemployment rates of 10%, 15%, or even 20%.  But I supported the Recovery Act because I believed it would, over the course of two years, right this economy and put Americans back to work.  The evidence that I have seen, in Northern Virginia and across the nation, shows that belief has been vindicated.  More spending at this point is unnecessary and unwise.  At some point the bill will come due.”

Connolly cited local and national data to support his belief that the Recovery Act is working.  Recently, the national unemployment rate dropped from 10.2% to 10%, while Northern Virginia’s unemployment rate dropped to 4.7%, among the lowest in the nation.  Third quarter GDP growth was 2.8% and many economists expect that fourth quarter GDP growth could come in at 4% or higher.

In Northern Virginia, at least $562 million in stimulus contracts have already been awarded to local businesses.  $77 million in advance funding was awarded to expedite the completion of Rail to Dulles, $60 million to complete the Fairfax County Parkway, and tens of millions more for other transportation projects.  Additionally, Fairfax and Prince William schools received more than $160 million, saving 764 classroom teacher positions.

“I’ve visited the schools, transportation projects, and businesses in Northern Virginia where the stimulus is working right now.  Over the next year, as obligated stimulus funds are spent at a faster rate, I believe we will see even greater benefits from the investments we’ve made.  But, as I stated recently in a letter to Speaker Pelosi, unused TARP funds represent an unprecedented opportunity to make a serious reduction in the federal deficit.  That should be our first priority.” 

Connolly also cited the fact that the Senate is unlikely to pass, or even consider, this piece of legislation.

“I sincerely hope to be able to support final passage of responsible legislation that strikes the proper balance between the need to pay down the deficit and the desire to further boost our economy.  Senate leaders have already indicated that they will not pass legislation, like H.R. 2847, which does not strike that balance.  I look forward to the Senate sending us a cleaner bill,” Connolly said.

Last week, Connolly wrote a letter, signed by 13 of his House colleagues, to House Speaker Pelosi, urging Congress to use a substantial amount of the excess TARP funds to reduce the federal deficit.  “This commitment to deficit reduction would be the largest single buy down in history,” he said in his letter.