Washington, DC – Congresswoman Carol Shea-Porter today stood with twenty members of the New England delegation and urged Speaker of the House Nancy Pelosi to increase funding for the Low Income Home Energy Assistance Program (LIHEAP) to $9 billion in a second economic recovery package. 

President Bush needs to start standing up for the American people," said Congresswoman Carol Shea-Porter.  "Thousands of families across New England will be unable to heat their homes this winter because of cuts the Bush Administration has made to LIHEAP.  I urge Speaker Pelosi to provide this emergency funding so families do not have to choose between putting food on the table and staying warm.” 

Properly funding LIHEAP is critical to protecting New Hampshire seniors and children.  Last year’s record high energy costs resulted in many New Hampshire families carrying larger balances with their home heating venders.  Without assistance from LIHEAP, many families may not be able to pay off their balances in time, and will be unable to receive their first delivery of oil when the winter months draw near.  Additionally, heating oil prices are expected to rise by almost 50% this year.   

Congresswoman Shea-Porter has been a strong advocate for LIHEAP funding.   Earlier this year, she testified before the House Budget Committee and called for a “robust funding level.”   Last year, Congresswoman Shea-Porter urged President Bush to properly fund the program by releasing the remaining contingency funds and helped pass an omnibus bill that included $2.6 billion in funding.

Washington, D.C.—Today, Representatives Carol Shea-Porter and Paul Hodes continued to stand up for New Hampshire students.  In a letter to Education Secretary Margaret Spellings, Representatives Shea-Porter and Hodes requested that the Secretary take additional steps to ensure students will have access to loans. 

“Middle Class New Hampshire families are struggling to pay for their children’s education,” said Rep. Carol Shea-Porter.  “The cost of education is skyrocketing and there is current instability in the credit markets, so it is critical to give students and their families continued access to loans.”

“As the credit market continues to worsen, we must do everything possible to keep the dream of a higher education alive for New Hampshire students,” Rep. Paul Hodes said. “We urge the Secretary of Education to explore all possible avenues to make both public and private loans available to every New Hampshire family seeking to better their life through higher education.”

“The Federal Family Education Loan Program represents the largest federal source of financial aid for New Hampshire students,” according to René Drouin of the NH Higher Education Loan Corporation (NHHELCO). “Implementation of the Ensuring Continued Access to Student Loans Act of 2008 must ensure that nonprofit lenders, like NHHELCO, can continue to support students.”

The Ensuring Continued Access to Student Loans Act of 2008 ( ECALA) currently provides a number of resources meant to counteract the current impact the credit crisis is having on the student loan markets.  However, Representatives Shea-Porter and Hodes believe further action must be taken to ensure the continued disbursement of loans made to students.

A copy of the letter is below:

The Honorable Margaret Spellings

Secretary

U.S. Department of Education

400 Maryland Avenue, SW

Washington, DC 20009

Dear Secretary Spellings:

The Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) provides a number of tools to be used in mitigating the impact of the current credit crisis on student loan markets. Many lenders are relying on these provisions to provide the liquidity they need to continue making student loans for the upcoming school year. While we applaud the speed with which the Department has begun working to implement ECASLA, we urge you to take further action by helping to match lenders with banks and other firms willing to provide the necessary capital to fund the initial disbursement of loans made to students.

The Department is in a unique position to facilitate these connections by establishing a clearinghouse of information to assist lenders in their efforts to connect with banks and others that are able and willing to provide short-term funding. While the implementation of the ECASLA loan purchasing provisions will provide some relief, more must be done in order to ensure that lenders, such as the New Hampshire Higher Education Loan Corporation (NHHELCO), are able to continue making new loans. The additional sources of funding facilitated by the clearinghouse would play a critical role in helping to address the liquidity issues NHHELCO, and others, are facing.

Additionally, with respect to the loan purchasing program, the 7-14 business day reimbursement time frame gives us cause for concern. While we understand that the Department anticipates the eventual shortening of this time frame, lenders such as NHHELCO, in the mean time, will find it difficult to secure the necessary capital. For example, this time frame would require NHHELCO to have about three weeks of working capital on hand, or, in their case, approximately $100,000,000. Given the current credit market conditions, this small nonprofit lender simply does not have access to this kind of capital. If the Department’s programs are to work, payments for the sale of loans and participation interests must be made available to lenders promptly (24-48 hours).

The combination of a clearinghouse and a decrease in the reimbursement time frame is critical to ensuring a successful implementation of ECASLA. We thank you for your attention to this matter, and look forward to your prompt response.

Washington, D.C.—Congresswoman Carol Shea-Porter today requested $3 billion in funding for the Low Income Home Energy Assistance Program (LIHEAP).  In a letter sent to House Leaders Speaker Pelosi and Majority Leader Hoyer, Shea-Porter urged LIHEAP funding be included in any future economic stimulus package.

“More than 30,000 New Hampshire families rely on LIHEAP each winter to keep the heat on,” said Congresswoman Shea-Porter.  “It is critical that LIHEAP receive proper funding so our state’s most vulnerable citizens do not have to suffer from the cold.   Hard-working Americans should not have to choose between putting food on the table and heating their homes.”

Properly funding LIHEAP is critical to protecting New Hampshire seniors and children.  Last year’s record high energy costs resulted in many New Hampshire families carrying larger balances with their home heating venders.  Without assistance from LIHEAP, many families may not be able to pay off their balances in time, and will be unable to receive their first delivery of oil when the winter months draw near.  Additionally, heating oil prices are expected to rise by almost 50% this year.   

Congresswoman Shea-Porter has been a strong advocate for LIHEAP funding.   Earlier this year, she testified before the House Budget Committee and called for a “robust funding level.”   Last year, Congresswoman Shea-Porter urged President Bush to properly fund the program by releasing the remaining contingency funds and helped pass an omnibus bill that included $2.6 billion in funding.

The complete text of the letter is attached.

The Honorable Nancy Pelosi
Speaker of the House
United States House of Representatives
Room H232, The Capitol
Washington, DC  20515 

The Honorable Steny H. Hoyer
Majority Leader
United States House of Representatives
Room H107, The Capitol
Washington, DC 20515
 
Dear Speaker Pelosi and Majority Leader Hoyer:

I am writing to request that any future economic stimulus package, or other appropriate legislative vehicle, provide robust funding of at least $3 billion for the Low Income Home Energy Assistance Program (LIHEAP).  In New Hampshire, over 30,000 families rely on this program every winter to keep the heat on.  Without adequate funding this year, some people will resort to dangerous methods for heating their homes and others will suffer in freezing temperatures.

Families in New Hampshire are struggling already this summer, planning out their budgets, looking at the numbers and wondering how they are going to make ends meet.  Hard-working Americans should not have to make the choice between putting food on the table and heating their homes.

Last winter’s record high energy costs have resulted in New Hampshire families carrying larger than usual balances with their home heating oil vendors.  Without some additional assistance, they may not be able to pay balances off in time, and they will not get their first delivery of oil when the winter months draw near.  To make matters worse, heating oil prices are expected to rise by almost 50% this year again.  It is likely that those who can afford to buy some heating oil this year will not be able to afford enough to last through the many months of a New Hampshire winter.  Without help from Congress, our most vulnerable citizens face a real and terrible threat.  

Again, I urge you to include emergency funding of at least $3 billion for the LIHEAP program in any economic stimulus package or appropriate vehicle that this body may consider.

Thank you for your kind consideration of this request.

Sincerely,

Carol Shea-Porter
Member of Congress

Washington, DC – Congresswoman Carol Shea-Porter today announced that University of New Hampshire Graduate School of Academic Affairs has been awarded a $279,000 federal grant under the Ronald E. McNair Post-Baccalaureate Achievement Program.

The McNair Program grant is provided through the Department of Education.  It provides universities with funding to assist low-income, first-generation college students and students from underrepresented groups in order to prepare them for doctoral study.

“I am very pleased to announce this grant award,” stated Congresswoman Shea-Porter.  “It will be invaluable to UNH and the students of New Hampshire.”

The University of New Hampshire will be able to use the funds for a variety of programs and services for students, including opportunities for research, summer internships, seminars, tutoring, academic counseling, graduate school admissions and financial assistance, mentoring programs, and cultural events.