U.S. House Republicans on Friday blocked a last-minute effort to allow foreclosure-prevention funds to be directed to legal aid groups, arguing it was an inappropriate use of financial rescue money.
Lawmakers failed to pass a bill sponsored by Rep. Marcy Kaptur (D., Ohio) that would allow those groups to receive money through a federal program to assist homeowners on the verge of foreclosure.
The bill needed a two-thirds vote to pass because it was brought up under a special House procedure intended for uncontroversial issues. It fell short, in a 210-145 vote, largely along party lines.
The Treasury Department has allocated $7.6 billion to 18 states and the District of Columbia through the Hardest Hit fund, which uses money from the $700 billion Troubled Asset Relief Program.
Currently, legal aid groups are not able to receive such assistance. Treasury Secretary Timothy Geithner said in a letter to lawmakers Friday that he supports legislation allowing them to do so.
Republicans said the measure amounts to a continuation of the deeply unpopular government bailouts. Speaking on the House floor, Rep. Lee Terry (R., Neb.) said Democrats are “attempting to bring the bailout back to life for the sole purpose of showering taxpayer money on community groups that provide legal assistance.”
Here is the rest at the WSJ here…
House Vote on Passage H.R. 5510 Aiding Those Facing Foreclosure Act of 2010
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