Press Conference with Senate Majority Leader Harry Reid (D-NV), Senator Richard Durbin (D-IL), Senator Charles Schumer (D-NY), Senator Patty Murray (D-WA), and Senator Jack Reed (D-RI); Subject: The Economy

Statement

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SEN. MURRAY: Well, I want to thank all of my colleagues for their tireless efforts on this really important subject. Everybody knows that we're facing a crisis in our economy, and with nearly every indicator pointing in the wrong direction today, we are committed to providing relief to the American people to get things moving back in the right direction.

As Senator Reid said, we started this last week in putting forward the economic stimulus package, a timely, targeted package that will put money in the hands of more than 100 million Americans, but we know that that is not enough and we are here to take the next important step.

As has been said, the epicenter of this crisis in our economy really lies in the crumbling housing market, so the series of proposals that we are outlining today is going to help give our communities a jump- start and will give our businesses some very important relief.

This housing crisis is crippling the homebuilding industry. The latest data that was issued by the Commerce Department reported that new home construction fell 40 percent over the past year. Now, that's the nationwide average. In some regions of the country it's as much as 50, 60 or even 70 percent decline in housing permits that have been issued. So the tax provisions included in this bill are desperately needed options for homebuilders to ensure that they are able to weather this downturn.

Another area that I want to really focus on is an important piece that will bring relief and aid to many of our families who are facing foreclosure in the very near future. A lot of families today are very nervous knowing that their dream of owning a home has become a nightmare. So we are offering them some specific help. This bill contains over $200 million in funding for pre-foreclosure counseling services. That additional funding for helping counselors continue their outreach to families is extremely important. With those funds, we will reach an additional -- 500,000 additional families to connect with their mortgage lender, to explore options so they don't lose their homes.

Last year, as Senator Schumer said, during the budgeting process we were able to add a $180 million increase for counseling funding, and we are finding this is being used and needed dramatically across the country. We know it's an important step. And anybody who disagrees with that, go to Ohio or Michigan or many of our states where neighborhoods are just devastated and families are in tears.

So this counseling is an important part of getting us back on our feet to give families the help they need so that they don't go into foreclosure and lose their homes. So this is an important piece to this, and I look forward to working with my colleagues to get this bill done.

MORE ******* Matching of next tape 021406SR.XD look forward to working with my colleagues to get this bill done.

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