House Passes Bipartisan Agreement on Transportation Funding, Student Loans, Flood Insurance
Gibson Lauds House-Senate Agreement that Extends Critical Programs
Washington,
Jun 29, 2012 -
House Passes Bipartisan Agreement on Transportation Funding, Student Loans, Flood Insurance
Gibson Lauds House-Senate Agreement that Extends Critical Programs
Washington, DC – Congressman Chris Gibson (NY-20) announced today that the House of Representatives passed a conference agreement that includes critical funding for our transportation infrastructure, prevents student loan interest rates from doubling, and extends a vital flood insurance program. The bipartisan agreement passed the House 373-52, and now goes to the Senate for approval.
“Today’s vote in the House addresses three significant issues that will help my constituents across Upstate, and I was proud to vote in favor of the legislation. New Yorkers must have confidence in our roads and bridges and the state needs this funding to make our infrastructure safer and more efficient. This extension provides certainty in funding for our State Department of Transportation through 2014,” said Congressman Gibson. “Additionally, students looking to take out new Stafford Loans are now assured their interest rates will remain low, making higher education more affordable. Finally, as we saw during last year’s devastating storms, the reauthorization of the National Flood Insurance Program and updated flood plain mapping helps to ensure that in the event of a natural disaster, homeowners and small business owners are protected.”
Key Provisions in the Agreement are Follows
Transportation
· Total Spending: $101B over the FY13 and 14 for the federal highway, transit, highway safety and motor carrier safety programs.
· Stable funding through FY 2014, allowing for New York State to have more certainty in long-term funding
· Significant increase in Transportation Infrastructure Finance and Innovation Act (TIFIA) funding. New York may benefit from the significant increase in TIFIA authority from $122 million under current law to $750 million for FY2013 and $1 billion for FY2014. Additionally, the conference report calls for increasing the maximum federal share of project costs from 33 percent to 49 percent. New York has a request pending with United States Department of Transportation for a $2 billion TIFIA loan for replacement of the Tappan Zee Bridge.
· Streamlined the regulatory process to expedite the project approval process.
· Increased public transportation funding while keeping the State’s share stable.
Student Loans
· The Conference Report would prevent the interest rates on new subsidized Stafford loans from increasing to 6.8 percent on July 1, 2012. Instead, interest rates for new subsidized Stafford loan borrowers will be maintained at the lower interest rate of 3.4 percent through June 30, 2013.
Flood Insurance
· In 1968, Congress established the National Flood Insurance Program (NFIP) to address the nation's flood exposure and challenges inherent in financing and managing flood risks in the private sector.
· Out of approximately 325,000 properties in NY-20, 16,408 properties are considered “at risk” according to FEMA, meaning there is at least a 26% chance of the property flooding at least once over the period of a 30-year mortgage.
o In NYS, only about 30% of all high risk properties have flood insurance as they are not required to purchase it due to outdated flood maps.
o The Conference Report includes a 5-year extension of NFIP and reforms including updated flood plain maps, which were created with the consultation of local officials and experts.
