The White House has threatened to veto the bill, but it won’t come to that: It’s dead on arrival in the Senate, where Majority Leader Harry Reid, D-Nev., has advanced a plan to pay for extending the lower student-loan rates by levying taxes on those who make $250,000 or more per year from certain small “S corporations,” private businesses that don’t pay corporate taxes. House Democrats had wanted to pay for it by ending subsidies to oil and gas companies.
Here’s what Rep. Barbara Lee, D-Oakland, said on the House floor before today’s vote:
“Mr. Speaker, I’m here today to speak out against H.R. 4628, the so-called Interest Rate Reduction Act.
“It is clear to me that Republicans are not serious about addressing the student loan interest rate hikes, with this so-called Interest Rate Reduction Act. Their bill is a wolf in sheep’s clothing, and would permanently end the Prevention and Public Health Fund, a key component of the Affordable Care Act that promotes wellness, prevents disease, and protects against public health emergencies.
“This prevention Fund is the first mandatory funding stream dedicated to improving public health – and it is extremely important in our fight to prevent chronic diseases, including HIV/AIDS, in Women’s health.
“This is such a sad and sinister ploy. Instead of pitting student loan relief for middle and low-income families against critical preventive services for middle and low-income families, we should be working toward real solutions. Instead of paying for subsidies to big oil, we should invest in our students, who are our future.
“This bill jeopardizes the health of our nation and it uses our students as pawns. And it is morally wrong. I hope we defeat this insincere proposal.”
After the vote, House Speaker John Boehner, R-Ohio said:
“Students and families are struggling in President Obama’s economy. Nearly half of college graduates are unemployed or underemployed, and laws like ObamaCare have only made it harder for small businesses to hire them. That’s why House Republicans voted to extend current student loan rates and to pay for it by eliminating an ObamaCare slush fund President Obama himself proposed cutting from his budget. It’s time for the president and Democrats in Congress to stop exploiting the challenges facing young Americans for political gain, and start working with Republicans to create a better environment for private-sector job growth.”
But, from Rep. George Miller, D-Martinez, the ranking Democrat on the House Education and the Workforce Committee:
“Today’s vote shows that the Republicans are on very thin ice on this issue, barely being able to pass their bill, and by less than a majority of the House. They should join us now on a bill to lower the loan rates and pay for it in a way that does not harm middle class women and children.
“Republicans call the Prevention and Public Health Fund a ‘slush’ fund. That’s amazing. Breast and cervical cancer screenings are not things you pay for with a slush fund. You don’t immunize children from infectious disease with a slush fund. You want know what a slush fund is? A slush fund is the tax loophole Republicans are protecting for the five largest oil and gas companies making record profits. That’s a slush fund.”