Randy Neugebauer

Mr. NEUGEBAUER

Mr. NEUGEBAUER. These regulatory checks are not new to many U.S. agencies, which already must comply with certain Administrative Procedure Act requirements when setting Federal standards. While there may be a critical role for U.S. representatives to play in the international insurance discussion, it is important that our advocates ensure that U.S. interests are not recklessly pushed aside in the name of global harmony. I urge my colleagues to support H.R. 5143.

Mr. NEUGEBAUER. I thank the chairman and thank him for his leadership and his kind words. It has been a great pleasure to serve on this Financial Services Committee. I think we have done some good work. I enjoyed working with my colleagues on the other side of the aisle on some issues as well. I wish you the very best as you continue as a committee to work on behalf of Americans all across the country to make sure that they have access to the financial products that they need for their families. Mr. Speaker, I rise in support of H.R. 5143, offered by my good friend from Missouri (Mr. Luetkemeyer). The Transparent Insurance Standards Act is critically important to ensuring that the U.S. State-based model for regulating insurance is preserved and that international agreements benefit U.S. consumers. Since the passage of the Dodd-Frank Act, the increased role of the Federal Government in insurance regulation has led to changes to U.S. participation in international insurance forums, like the International Association of Insurance Supervisors. The Federal Insurance Office, FIO, is charged with representing the interests of U.S. insurers during negotiations of international agreements. Further, the FIO, along with the Federal Reserve, is an active participant in international standard-setting bodies. Over the last several years, developments in international insurance supervision have created tension with our State-based model. The European Union has moved toward a single regulatory structure for its member states. This effort, known as Solvency II, will harmonize the varied regulatory regimes in each European nation. Many have raised concern that Solvency II will be adopted as the gold standard for international insurance supervision. Solvency II could put the U.S. insurance industry and the U.S. policyholders at a disadvantage. H.R. 5143 is important legislation that enhances the congressional oversight of international deliberations for insurance regulation. It holds both the FIO and the Federal Reserve to important benchmarks that ensure that U.S. interests are being represented. For example, the agencies must provide joint analyses on the impact of proposed international standards on U.S. consumers and insurance markets. Further, it allows for public comment on any proposed final standard that the U.S. may agree to.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Well, I thank the gentleman, and I thank my colleagues for those very kind words. What an honor and a privilege it has been to be able to serve with people of this integrity and this commitment to our country. You know, it was just a little over 13\1/2\ years ago that our colleague from Texas (Mr. Barton) introduced me on this very House floor my very first day. It was June 5, 2003. I came in a special election. I think Mr. Conaway mentioned that we had a race together. I was sworn in as the 236th Texan and the 9,832nd American citizen. What you realize is what an honor and a privilege it is to get to do this, and what an honor and a privilege it has been to represent the people of the 19th Congressional District. Somebody asked me one day: Do I ever think about, when I am on the House floor, the men and women who have served here in the past? I said: No, I really don't think about the men and women who have served in the past because their history has been written. The people that I think about are the men and women whom I serve with every day because we are writing our history, and the things that we do and the things that we say on this floor have a huge impact not only on our constituents, but on our country and on the world. So I want to thank my wife, Dana, and my family for helping me do this job on behalf of the people of the 19th District. Without Dana's support, I couldn't have done this. My two sons and their wives have been an integral part of this, and even my grandkids were out campaigning when we were running for Congress. I also want to thank those men and women who have come through our congressional office, both here in D.C. and back in the district, who have worked so hard on behalf of our constituents, making sure that that veteran gets his check or making sure that that Social Security check that was lost was found, helping people get their loved ones back from a foreign country because of visa problems. All of those kinds of things are important. So I want to thank the staff who have been so much a part of that, and I want to thank the people of the 19th District and my family, but I also want to thank my fellow colleagues whom I have served with. Everybody here that I have come in contact with loves America. Now, what we do have is a difference of opinion from time to time on what it takes to make sure that America has the bright future that we all want it to have, and that is a healthy process. I am excited for our President-elect and these new Members of Congress who will be sworn in in just a few weeks because they have a big task ahead of them. So as many of my constituents have prayed for me and this Congress in the past, Dana and I will be praying for them as they take our country forward. Thank you again, and God bless you, and God bless the United States of America.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. I thank the gentleman for those kind words. Mr. Speaker, I rise today in support of H.R. 6392, offered by my good friend from Missouri (Mr. Luetkemeyer). H.R. 6392, known as the Systemic Risk Designation Improvement Act, is bipartisan legislation that ensures that the Federal Government takes a thoughtful and comprehensive approach when evaluating the financial stability concerns posed by U.S. bank holding companies. Under H.R. 6392, the bank holding companies will no longer be measured by their size alone when evaluated for the application of heightened prudential standards. Instead, the Financial Stability Oversight Council will use a metrics-based approach that takes into consideration the totality of the bank holding company's operations. Using this framework, bank holding companies will be measured on size, complexity, their interconnectedness, cross-jurisdictional activity, and available substitutes. This approach is similar to the framework used by the international body known as the Financial Stability Board, which designates global systemically important banks. Further, it is the framework already being used by the Federal Reserve when it evaluates financial stability concerns stemming from bank mergers. Mounting evidence coming from regulators and academics have highlighted the flaws in using a size-only approach to measuring systemic risk. Further, several democratically appointed regulators have noted the flaws with Dodd-Frank's threshold of $50 billion in assets. Put simply, many bank holding companies are being subjected to enhanced regulatory requirements for no sound policy reasons. That results in restricted lending, decreased services to customers, and inefficiencies in the marketplace. We must strive to ensure that the government policy is thoughtful and properly calibrated. H.R. 6392 is absolutely necessary to ensure that we meet those principles. I urge my colleagues to vote ``yes'' for H.R. 6392.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to recognize the 10th anniversary of Grace Health Clinic in Lubbock, Texas. I would also like to honor Grace Health Clinic's founder and CEO, Dr. Randy Hickle, and recognize his commitment to providing quality, service and value to the countless families throughout the South Plains. To appreciate this accomplishment, one must understand the humble beginnings from which Grace Health Clinic came. Dr. Hickle founded Grace Clinic in 2006 with just eight doctors on staff. Under his guidance, Grace Health Clinic has transformed into Grace Health System, growing to more than 50 doctors and specialists and expanding its operations to better serve their patients' needs. The award-winning clinic is the only locally owned, doctor-operated health facility in the region. Thanks to the tireless efforts of Dr. Hickle, Grace Health Clinic has been able to grow without losing its focus on patients and their healthcare needs. Mr. Speaker, it is my honor to recognize a clinic that has contributed so much to our community. It is my pleasure to take this opportunity and praise the vision that Dr. Hickle had when he founded this clinic 10 years ago and the leadership he has exhibited throughout this journey.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to honor and remember Captain Jordan Pierson, a young man who I had the honor of nominating to the Unites States Air Force Academy. Jordan was an exemplary individual who graduated from Coronado High School in Lubbock, Texas, in 2005 before moving on to the Air Force Academy. Through the Air Force, he dedicated his life to serving others. On October 2, 2015, Jordan, five other airmen, and five civilians died when their C-130J aircraft crashed at Jalalabad Airfield in Afghanistan. I helped Jordan start out on his path toward a career in the military by nominating him to the Air Force Academy. I also had the honor of seeing him home, being present when his body was returned from overseas and interred at Arlington National Cemetery. Jordan is survived by his wife, Jaime Pierson. As we remembered those who have served on Veterans Day earlier this month, I ask my colleagues to join me in honoring Jordan Pierson and assuring his friends and family that he is not forgotten.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to honor the life of an American hero, who was taken from us far too soon by an act of terrorism. Taylor Force was a student at Vanderbilt University, working to obtain his Master in Business Administration, when he traveled on a school-sponsored trip to Jaffa, Israel in March 2016. While there, he was attacked and killed by a Palestinian terrorist. He was 28 years old. Before going back to school for his master's degree, Taylor attended the New Mexico Military Institute, graduating in 2006. I then had the honor of nominating Taylor Force to the United States Military Academy at West Point. He graduated from West Point in May of 2009 and was commissioned a 2nd Lieutenant in the U.S. Army. As a Field Artillery Officer, Taylor served our country by completing one combat tour in Iraq and another combat tour in Afghanistan. On behalf of a grateful nation and the 19th District of Texas, which Taylor called home for many years, I ask my colleagues to join me in honoring veteran Taylor Force. His courage, sacrifice, and dedication will not be forgotten.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to celebrate and salute the life of Dr. Samuel ``Sam'' E. Curl, who passed away August 2, 2016. Sam grew up near Tolar, Texas, where he graduated from high school in 1955. After earning a junior college diploma at Tarleton State University in 1957, he continued on to Sam Houston State University where he received his bachelor's degree. Then he earned a master's degree in Animal Genetics from the University of Missouri and a Ph.D. in Animal Physiology from Texas A&M University. He earned the rank of Captain through his service in the United States Army. After his service, Dr. Curl was a Special Assistant to the President and then President of Phillips University in Enid, Oklahoma, and authored or co-authored three books and 95 scientific technical publications. Dr. Curl then moved to Texas Tech University, my alma mater, where he served a total 31 years, including three years as Associate Vice President for Academic Affairs. Before that, he was Dean of the College of Agricultural Sciences and Natural Resources from 1979 to 1997. He moved to Oklahoma State University in 1997 to head their College of Agricultural Sciences and Natural Resources, as well as being the Director of the Oklahoma Agricultural Experiment Station, and the Oklahoma Cooperative Extension Service. After retiring from working full time in 2004, Dr. Curl worked as a part-time consultant. For all of his amazing accomplishments as a professional and an academic, I knew Sam as a loving father and grandfather who delighted in spending time with his family. He was an active member of Acton United Methodist Church. His passions for fishing, travelling, sports, and musical theatre were well known to his friends and family. I know that his wife, Mary, and his children Jane, Julia, Karen, and stepchildren Ryan and Shelly will miss him dearly, as will his grandchildren Rachel, Robert, Greyson, Avery, Robert, and Daisy. Those who knew him, myself included, are better for having known Dr. Sam Curl, and I ask my colleagues to join me in this tribute to his wonderful life. He will be missed.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to recognize the 2016 Texas Tech Red Raider baseball team. The Red Raiders, led by Big 12 coach of year, Tim Tadlock, capped off a tremendous season in which they won the Big 12 title and advanced to the College World Series for the second time in the past 3 years. This trip, they earned the program's first- ever win in Omaha. This team's hard work was evident as I watched their impressive run. I want to highlight the contributions of the senior class, a group who led Tech to 149 wins since 2013. Several of these players have moved on to professional baseball careers, and we wish all of them the best in their future endeavors. This team ended the year ranked number 4 nationally, Tech's highest ranking in school history. I am especially proud of the way these young men carried themselves in victory and defeat. Under the guidance of Coach Tadlock and his staff, next year's team should be well positioned to carry on Tech's recent baseball success. Red Raider nation and I thank you for the way you represented the university.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Chairman, I rise in support of H.R. 3340, the Financial Stability Oversight Council Reform Act introduced by my good friend, Representative Tom Emmer, from Minnesota. This is an important part. When I go back home and people hear about a bill that has been passed or new regulations that come out and they have a question about that--and particularly, I guess, under this administration, we have heard a lot of people say: What are you all going to do about that new rule that the administration pulled up? You all have the power of the purse. Why don't you do something about that? The Founders were very clear about having different branches of government. One of the things that creates a lot of consternation for a lot of people is that they see some of these agencies created in Dodd-Frank, like the Financial Stability Oversight Council, FSOC, which has no accountability to anybody. They operate in an unaccountable and not very transparent way, and they have a huge amount of impact on markets. In fact, when they determined that MetLife was systemically important, a Federal judge the other day said that they reached that conclusion inappropriately, that they weren't transparent, they weren't open, and that they didn't actually follow their own rules in determining this entity being systemically important. So why in the world would we not want them to be accountable to the taxpayers? Because, ultimately, all of this money, Mr. Speaker, belongs to the American taxpayers and they are expecting this Congress to review the actions of many of these agencies. I am amused at my colleagues on the other side of the aisle. They kept talking about how important many of these entities are and what a great job they are doing, yet they are not willing to allow them to be accountable and to come forth and make a case why they should be spending the money they are spending or why they are taking the actions that they are taking. Talking about Mr. Jefferson, this is not the government that our Founders intended. In fact, they were really reluctant to form a Federal Government, to give a centralized government any power. But they did ultimately determine that there would be some good about that, primarily for the common defense. I don't think they intended to create agencies that had no accountability.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I thank the chairman for the time. I also want to commend the gentlewoman from Utah (Mrs. Love) for an outstanding piece of legislation. I rise today in support of H.R. 3791. Sometimes we get up here and we talk about things in a technical way. And let me just explain to you what this good piece of legislation does. Unfortunately, over the last few years, we have lost over 1,000 community banks in our country. In fact, we are losing them at the rate of about one a day right now. That is important to my district because I am from the 19th Congressional District, which is a relatively rural district. I have a lot of small communities that have community banks in there. Some of them have been in business 75 or 100 years. Unfortunately, in this environment, because of all of the regulations coming out of Dodd-Frank, many of these financial institutions are no longer viable on a standalone basis. What is the alternative? Well, the alternative for those small banks is to search for someone to purchase them so that that bank can remain in that community. In Texas, for example, this bill would allow 44 small bank holding companies to be able to help absorb some of those smaller banks. Why is that important? Because in many of those communities, that little community bank is really one of the last corporate citizens standing there. They are the ones that sponsor the scoreboard for Friday night football, which is kind of big in Texas. They are the ones that support the chamber of commerce. So what the Federal Reserve recognized is that, normally, they don't allow debt to be used as the transaction for larger holding companies, but they realized going out and getting capital for these small purchases is difficult. So what the Federal Reserve has said is: Well, we are going to allow them to use up to 75 percent of the purchase price that can be debt. Now, this does nothing about the safety and soundness. In other words, the holding companies that are purchasing these still have to maintain the appropriate capital ratios and all of those other things. So this in no way affects the health of the banking industry, but it does facilitate the ability to make sure that these small community banks are able to stay in the communities they are in by being purchased by an entity that is a little bit larger that can amortize that cost. I encourage my colleagues to support H.R. 3791 and support community banks.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, today I rise to celebrate the 100th Anniversary of United Supermarkets. United Supermarkets has been a shining example of a community business since 1916, and in Lubbock, since 1956. With unrivaled customer service, United Supermarkets has always done business the right way. Through hard work and entrepreneurship, United Supermarkets has grown from one store, to a regional powerhouse with 66 stores now in existence. That's something of which to be very proud. I am especially proud of United's volunteer work and financial donations. From charity golf tournaments, to employees logging tens of thousands of community service hours, and the Texas Tech Basketball Arena that bears the company's name--United is more than just a supermarket. It's an institution in our community. I ask my colleagues to join me in sending our congratulations on 100 years of success and service. May God Bless the United Supermarkets family of stores and may God continue to bless the United States of America.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, today I rise to honor the life and legacy of former Congressman Mike Oxley from Ohio. I had the pleasure of serving with Congressman Oxley on the House Financial Services Committee. Under his leadership as Chairman, the Committee pursued a pro-growth economic agenda, protected American consumers, and conducted robust oversight of Washington's regulatory agencies. Congressman Oxley was a true American patriot that dedicated his life to public service and helping his constituents in Ohio. His passion for America was profound. This legislative body and the institution of Congress became a better place because of his service and legacy. I ask my colleagues to join me in sending our thoughts and prayers to the Oxley family. May God Bless the Oxley's and may God continue to bless the United States of America.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Chairman, I rise today to support H.R. 766, the Financial Institution Customer Protection Act of 2015, offered by my good friend from Missouri (Mr. Luetkemeyer). This legislation is critical to ensure small businesses across the country are able to access basic banking services without the threat of being targeted at the political or ideological whims of Washington bureaucrats. As my colleagues have mentioned, H.R. 766 prohibits the Federal Government banking regulators from formally or informally prohibiting banks to serve lawful and legitimate businesses. Let me repeat that. It keeps them from prohibiting banks from serving lawful and legitimate businesses. Over the last several years, we have seen an effort by the Department of Justice, in cooperation with the Federal banking regulators, to target certain categories of lawful merchants. These merchants include gun stores, short-term, small-dollar credit lenders, and others. This effort has been officially named Operation Choke Point. Operation Choke Point has used a perverse interpretation of the Financial Institutions Reform, Recovery, and Enforcement Act, currently referred to as FIRREA, to force banks to terminate banking relationships with certain categories of merchants even if its unlawful behavior isn't present. Representative Luetkemeyer's bill would clarify the original intent of FIRREA. Unfortunately, the minority leader and the ranking member of the committee have been spreading misinformation about the impact of H.R. 766. So I will spend the rest of my remarks outlining exactly what the bill will do and what it will not do. It does not decriminalize any type of fraud. All of these criminal statutes comprising FIRREA's predicted offenses are untouched by this bill. H.R. 766 does not prohibit the Department of Justice from holding financial institutions accountable. FIRREA tools are still available for the pursuit of any of the frauds committed by bank insiders against the bank. Additionally, the bill expressly provides that FIRREA's civil tools also apply to fraud committed by the bank against an unaffiliated third party. In other words, where a bank defrauds a purchaser of a mortgage- backed security, as was alleged by the big bank settlements, FIRREA's civil tools remain available to the Department of Justice. H.R. 766 does prohibit the use of FIRREA tools where fraud is committed by a bank's account holder, but not by the bank itself. This is the type of self-affecting fraud that the Department of Justice asserted that gave rise to Operation Choke Point. In other words, the fraud must be committed by the bank or against the bank for FIRREA to apply. I hope everyone will read page 6, lines 21-25, of the bill. Finally, H.R. 766 does limit the ability of the Attorney General to delegate issuance of FIRREA civil subpoenas. As a result, FIRREA subpoenas must be signed by the Attorney General or the Deputy Attorney General rather than a low-ranking Department of Justice attorney. Unfortunately, we yet have another example of the minority not actually reading the text of the bill before making public statements. Going forward, I hope the minority will study the text of the bill instead of relying on false statements and talking points of the senior Senator from Massachusetts.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Chairman, I want to thank Chairman Luetkemeyer and Ranking Member Cleaver for their work on this very important piece of legislation. I have been in the housing business probably for over 40-some-odd years. I have been involved in every aspect of it, from low-income housing, to rental housing, to new housing, to resale housing. One of the things that I have recognized over the years is what an important part housing is to the fabric of our country, how important housing is to families, and how people enter into the housing market in different ways. Certainly there are folks that go into market-based rental housing, and then there are folks that aren't quite ready to do that. Maybe they are getting started or have had a difficulty in their life, so lower-income housing provides an opportunity for them. I think the goal of the housing programs over the years is to provide low-income housing as a stepping stone and not a permanent residence. One of the things I like about H.R. 3700 is that it encourages that process. It has been brought up in a number of these programs, and over the years sometimes a good idea spreads around. We have spent a lot of time probably creating new housing programs and probably spent a lot of time increasing the funding for housing programs, but in many cases maybe we didn't stop and do the review and make sure that the programs that we had put in place were efficient in delivering the services that needed to be delivered and helping those families accomplish the goal of moving through the housing cycle. So one of the things that I like about this bill is that these families that have--in fact, the goal has been to increase their livelihood, and they have gotten better jobs and their income has increased. It is time, then, for those folks to move on. Because what we know is--and those statistics have been, I think, brought out today--we have got a number of people in the waiting line to get into some of this housing to better their lives. It is not fair that people whose incomes have far surpassed incomes that it takes to qualify to live in them should continue to do that. So affluent families must pay market rental rates or they have got to leave the public housing arena. Higher asset families must leave public housing. That is a normal cause. That is not cruel. That is just the way that these programs were designed to work. The other thing, though, is we have a responsibility not only to the families and individuals around our country, but we have a responsibility to the United States of America. One of the things that I think is important about this piece of legislation is it doesn't really mess with mandatory spending but is, according to CBO, going to save $300 million over 5 years. What that points out--and this is done really without cutting any of the programs, but just cutting some efficiencies in those programs to make sure that those programs are being administered appropriately--is, if there are some regulatory things that are keeping people from operating some of these public housing facilities in a way that maximizes the benefit, then we give them some flexibility to do that by reducing some duplicative regulatory processes and, more importantly, empowering the local entities and the local operators of this public housing to be more innovative and creative. As I have had an opportunity to visit some of our public housing facilities in my district, the 19th Congressional District, and sit down with a lot of those administrators, what they tell me is: Randy, if we could have more flexibility, we know how to deliver this service much more efficiently than we have today. But in many cases, the Federal regulation is inhibiting their ability to be able to implement some of those things. I want to commend the two gentlemen from Missouri for their outstanding work. Yes, we could probably do more, but the good thing is we got started. I think we are off to a good start, so I encourage my colleagues to support H.R. 3700.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I rise today to honor the life and sacrifice of Major General James Montgomery Breedlove, who passed away on January 9, 2016 in Lubbock, Texas at the age of 93. General Breedlove was a true American hero who dedicated his life to serving our nation. Upon graduating from the U.S. Military Academy at West Point, N.Y., General Breedlove attended pilot training at Randolph Air Force Base, Texas. After completing pilot training in 1948, General Breedlove married his wife Mary Ann Gossett. General Breedlove's service in the Air Force took him all across the United States, as well as to England, Germany, Korea, Thailand, and the Canal Zone. In 1951, during the Korean War, General Breedlove flew 39 combat missions and served with the 601st Aircraft Control and Warning Squadron at Kimpo as a controller. General Breedlove went on to graduate from the Imperial Defence College in London, and in 1969, assumed command of the 388th Tactical Fighter Wing at Korat Royal Thai Air Force Base--flying 162 combat missions. In 1970, General Breedlove assumed command of the 3500th Pilot Training Wing at Reese Air Force Base in Lubbock, Texas. He was promoted to Major General on May 1, 1973 and assumed command of the U.S. Air Forces Southern Command in the Canal Zone in 1974. In 1976, when the Tactical Air Command assumed responsibility for USAFSO, he was appointed commander, U.S. Air Force Southern Air Division of the Tactical Air Command and deputy commander in chief, U.S. Southern Command. General Breedlove's military decorations and awards include the Legion of Merit with oak leaf cluster, Distinguished Flying Cross, Bronze Star Medal, Air Medal with nine oak leaf clusters, Air Force Commendation Medal with oak leaf cluster, Distinguished Unit Citation Emblem, Air Force Outstanding Unit Award Ribbon with oak leaf cluster, Republic of Korea Presidential Unit Citation Ribbon, and the Royal Thai Supreme Command Forward Master Badge. General Breedlove leaves behind a proud and distinguished legacy of military service. His life's work has made America a safer and stronger nation for generations to come. I ask all of my colleagues in the House of Representatives to join me in honoring and remembering the life of this American patriot.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Madam Chair, I yield back the balance of my time.

Mr. NEUGEBAUER. Madam Chair, I yield the balance of my time to close to the gentleman from Texas (Mr. Hensarling), the distinguished chairman of the House Committee on Financial Services.

Mr. NEUGEBAUER. Madam Chair, I reserve the balance of my time.

Mr. NEUGEBAUER. Madam Chairman, I demand a recorded vote.

Mr. NEUGEBAUER. Madam Chair, I yield 1\1/2\ minutes to the gentleman from Michigan (Mr. Huizenga).

Mr. NEUGEBAUER. Madam Chair, I yield myself such time as I may consume. Madam Chair, I rise today to offer amendment No. 18 with the gentleman from Michigan (Mr. Huizenga), my good friend. First, let me say I don't think it is good policy that we are trying to fund transportation from other sectors of the economy. This amendment does seek to address two major issues in the budget offset sent over from the Senate--the Federal Reserve dividend increase and the g-fee increase. Moving forward with the Federal Reserve dividend reduction without studying it could have a devastating consequence for the supervision of the financial sector and the stability of the Federal Reserve System. The cost that banks, especially community banks, could face as a result of the dividend reduction would be passed on to hardworking consumers. At a time when many Americans continue to struggle from the unintended consequences of Dodd-Frank, it would be dangerous and irresponsible to move ahead with the Senate version. Second, this amendment addresses what I see as a further entrenchment of Fannie Mae and Freddie Mac. This is particularly timely because just this week we learned that Fannie and Freddie may need to tap the Treasury once again and saddle the taxpayers with the bill. This amendment further protects the taxpayers. Allowing Congress to continue to raise g-fees will make comprehensive housing finance reform impossible. Our amendment addresses both problems by liquidating and dissolving the Federal Reserve capital surplus account. The Federal Reserve currently has about $29 billion in capital surplus account. This account is made up of the earnings that the Federal Reserve has retained from investing member banks' money. Let me say that again. The surplus account is made up of earnings that the Federal Reserve has made from investing member banks' money. The Federal Reserve continues to hold this account in surplus at a time when our Nation is over $18.5 trillion in debt. This is not a perfect policy, but it is better than the alternative. This preserves the budget neutrality of the transportation bill and counters irresponsible proposals sent over to us by the Senate. Further, it protects consumers from potential for cost increases while reforming the surplus account to meet the needs of the current fiscal crisis. When the surplus account was created, no one could have imagined the debt and deficits that we are facing. It is appropriate to liquidate this account to meet today's realities. Moving forward, I hope that this body will ensure that transportation funding comes from transportation users and not completely unrelated sectors of the economy. Madam Chair, in closing, I include for the Record a joint trade letter of support from 27 banking and housing groups in support of amendment No. 18. Madam Chair, I reserve the balance of my time. November 4, 2015. Hon. Paul Ryan, Speaker, House of Representatives. Hon. Nancy Pelosi, Minority Leader, House of Representatives. Dear Speaker Ryan and Leader Pelosi: The undersigned organizations urge the House to adopt the Neugebauer-Huizenga amendment to H.R. 22, the DRIVE Act, which would remove two harmful provisions from the Senate version of the bill. The Neugebauer-Huizenga amendment would remove from H.R. 22 a harmful proposal to reduce the dividend paid on Federal Reserve stock that would have significant negative consequences on banks of all sizes across the country. Member banks of the Federal Reserve are required by law to purchase stock in regional Federal Reserve Banks. This stock may not be sold, transferred or even used as collateral, unlike virtually every other asset a bank holds. These funds represent ``dead capital'' for the financial institution. The dividend that the Senate is considering reducing reflects the unique structure and constraints of this arrangement that is required by law, as this is money that otherwise would be used by banks for lending and to provide other services to customers. The Neugebauer-Huizenga amendment would also remove from H.R. 22 an extension of higher Fannie Mae and Freddie Mac guarantee fees. The purpose of these fees is to prospectively guard against credit losses at Fannie Mae and Freddie Mac. G- fees should only be used to protect taxpayers from mortgage losses, not to fund unrelated spending. Each time g-fees are extended, increased and diverted for unrelated spending, homeowners are charged more for their mortgages and taxpayers are exposed to additional risk for the long-term. The g-fee increase was originally included in the Senate highway bill as a funding offset, but the Congressional Budget Office has scored the House bill as being budget neutral without this provision. It should be removed to ensure that potential homebuyers are not kept on the sidelines by raising the cost to purchase or refinance a home. To ensure it is fully offset, the Neugebauer-Huizenga amendment would use the Federal Reserve's ``surplus'' account of earnings retained after paying operating expenses and dividends. As a result of recent changes in the way the Federal Reserve operates, these retained earnings are no longer necessary. This amendment would use funds from this account to pay for the extension of the Highway Trust Fund. We urge the House to pass the Neugebauer-Huizenga amendment to H.R. 22. America's Homeowner Alliance, American Escrow Association, American Bankers Association, American Land Title Association, Center for Responsible Lending, The Clearing House, Community Home Lenders Association, Consumer Bankers Association, Consumer Mortgage Coalition, Credit Union National Association. The Financial Services Forum, Financial Services Roundtable, Habitat for Humanity International, Homeownership Preservation Foundation, Independent Community Bankers of America, Leading Builders of America, Mid-size Bank Coalition of America, Mortgage Bankers Association, National Association of Hispanic Real Estate Professionals. National Association of Home Builders, National Association of Real Estate Brokers, National Association of REALTORS, Real Estate Services Providers Council, Inc., The Realty Alliance, Securities Industry and Financial Markets Association, U.S. Chamber of Commerce Center for Capital Markets Competitiveness, U.S. Mortgage Insurers.

Mr. NEUGEBAUER. Madam Chair, I have an amendment at the desk.

Mr. NEUGEBAUER

Mr. NEUGEBAUER. Mr. Speaker, I have no further speakers. I yield back the balance of my time.

Mr. NEUGEBAUER. Mr. Speaker, I yield such time as he may consume to the gentleman from Texas (Mr. Williams), the primary author of this bill.