September '07 Nevada Government—Shelley Berkley Column

Berkley Delivers on Pledge to Make College More Affordable for Nevada Families—Historic Aid Bill Signed Into Law

Largest Investment in College Aid Since the GI Bill

CONGRESSWOMAN SHELLEY BERKLEY (D-NV) today [September 27, 2007] celebrated the enactment of Democratic legislation that will make college more affordable for students and families in Nevada and across the nation. The College Cost Reduction and Access Act, which passed Congress with Berkley’s strong support, was signed into law this morning.

“This is the single biggest investment in college aid since the passage of the GI bill and I am proud we have delivered on our pledge to lower the cost of higher education for more American families. As a former Nevada University Regent, and a proud UNLV graduate, I have seen first hand the doors a higher education opens for men and women of all ages, and this important legislation will help more Americans earn their college diplomas,” said Berkley.

The College Cost Reduction and Access Act boosts college financial aid by more than $20 billion over the next five years and increases the maximum value of the Pell Grant scholarship by $1,090 over the next five years, with the maximum value climbing to $5,400 in 2012.

“This record investment in our nation’s college and university students comes at no new cost to taxpayers and will create savings for families in Las Vegas and other communities through cuts in interest rates for student loans. We have also increased Pell Grant limits which will preserve the purchasing power of these valuable scholarships that are helping nearly 17,000 Nevada students—the majority of whom are from households earning under $30,000 annually,” said Berkley.

This increase in the Pell Grant fully restores the purchasing power of the scholarship, which in recent years had been frozen at $4,050, but was boosted to $4,310 by Congress earlier this year. More than five million low- and moderate-income students will benefit as a result of the new increase included in The College Cost Reduction and Access Act. Over the next five years, Nevada is projected to receive nearly $85 million in additional funding for loan aid and to cover increases in the vale of the Pell Grant scholarship.

To reduce the cost of loans for millions of student borrowers, the law cuts interest rates in half on need-based student loans, from 6.8 percent to 3.4 percent over the next four years. Once fully phased-in, this cut will save the typical student borrower—with $13,800 in need-based student loan debt—$4,400 over the life of the loan. Nearly seven million students take out need-based loans each year.

Student borrowers will also be prevented from facing unmanageable levels of federal student debt through a provision in the law guaranteeing that borrowers will never have to spend more than 15 percent of their yearly discretionary income on loan repayments and by allowing borrowers in economic hardship to have their loans forgiven after 25 years.

The College Cost Reduction and Access Act also includes a number of other provisions that will ease the financial burden imposed on students and families by the cost of college, including:

Tuition assistance for undergraduate students who agree to teach in the nation’s public schools.

Loan forgiveness after 10 years of public service and loan repayment for college graduates who go into vital public service jobs.

Landmark investments in Historically Black Colleges and Universities, Hispanic Serving Institutions and other minority serving institutions.

Strategies to help colleges contain costs and make online information on college costs for students and parents more user friendly.

President Franklin Roosevelt signed the GI Bill into law in 1944. The original law enabled 7.8 million veterans of the Second World War to participate in education or job training programs. The College Cost Reduction and Access Act is the largest investment in college aid since passage of that landmark law more than 50 years ago.

Berkley Votes to Protect Nevadans from Burden
of Added Tax Bill Resulting from Foreclosure

Congresswoman Continues Efforts to Help
Homeowners Caught in Subprime Mess

CONGRESSWOMAN SHELLEY BERKLEY (D-NV) today [September 26, 2007] joined with her colleagues on the powerful House Ways and Means Committee to pass legislation that will aid Nevada homeowners who may face a hefty tax bill as a result of a foreclosure or renegotiating a bad loan.

“After losing their home, the last issue a family needs to be faced with is the threat of a huge tax bill come next April. This legislation will address an issue that has become a growing concern because of Nevada’s soaring foreclosure rate. This Ways and Means package will remove the added threat of a large tax bill from the list of concerns faced by those who are already dealing with a foreclosure or renegotiation of a loan. By forgiving this tax liability, we will be helping Americans who are being hit hardest by today’s roller coaster housing market,” said Berkley. “But it also important to recognize that this bill does not provide the same assistance to investors with a second home or vacation property, it’s clearly geared to help those who stand to lose the very roof over their heads. Frankly, we need distinct standards when it comes to a primary residence versus an investment property and this bill recognizes that difference.”

With the full support of Congresswoman Berkley, the Ways and Means Committee unanimously approved H.R. 3648, The Mortgage Forgiveness Debt Relief Act of 2007. Both the legislation and Committee action are in response to problems in the subprime mortgage market.

Under current law, debt that is forgiven following mortgage foreclosure or renegotiation is considered income for tax purposes, resulting in tax liability for individuals and families. As a result, individuals who lose a home to foreclosure can end up owing income tax if the home is valued at less than is owed at the time of foreclosure. Under this scenario, the difference between the home’s current value and the amount owed is considered “forgiven debt” and is counted as income. Alternately, a homeowner can face the same problem if a lender agrees to lower the amount of principal owed during a refinance, in order to avoid foreclosure.

The Berkley-backed legislation would provide relief to qualified homeowners in Las Vegas and nationwide by permanently excluding debt forgiven under these circumstances from tax liability. The bill would also help would-be homeowners to secure their investments through a long-term extension of the tax deduction for private mortgage insurance, and would ease restrictions for qualifying as housing cooperative corporations. Finally, the bipartisan bill would tighten requirements taxpayers must meet to exclude gain from the sale of certain homes that have been used as a vacation home or rental property.

The Mortgage Forgiveness and Debt Relief Act is supported by the National Association of Realtors, the National Association of Home Builders, and the Mortgage Bankers Association.

Berkley Will Vote to Protect Healthcare for Nevada Kids

Extension Will Safeguard SCHIP Coverage for 30,000 NV Children

CONGRESSWOMAN SHELLEY BERKLEY (D-NV) today [September 25, 2007] said she will vote to extend healthcare coverage for children in Nevada and across the nation who are eligible under the State Children’s Health Insurance Program (SCHIP). The House is expected to vote later tonight to extend this vital program that currently provides healthcare coverage to more than 30,000 Nevada children through the Silver State’s Nevada Check Up Program.

“This bill protects healthcare for 30,000 kids who are now enrolled in Nevada Check Up and also provides resources to help enroll the 70,000 additional Nevada children who are eligible for coverage, but are not taking part in the program. I support SCHIP because it is a true investment in keeping our kids healthy by ensuring they have access to regular medical and dental care,” said Berkley. “Nevada Check Up is already helping tens of thousands of families in the Silver State, but with more resources we can make sure that even more qualified kids have regular access to an array of vital healthcare and preventative services.”

Berkley has also signaled her opposition to reported plans by President Bush to veto the SCHIP extension legislation set to come before the House later today.

“President Bush is wrong to oppose healthcare coverage for kids and I will vote to override any veto he issues against this extension package,” said Berkley. “Unfortunately, Nevada continues to have one of the highest percentages of uninsured families in the nation, so it is vital for the Silver State to see SCHIP extended. If President Bush and his allies block passage of this legislative package, 30,000 Nevada children will lose their coverage and we will have lost the opportunity to provide even more kids in Las Vegas and statewide access to quality healthcare services,” Berkley said.

The Berkley-backed SCHIP legislation expected on the House floor tonight has the support of the National Governors Association (NGA) and 270 organizations, including AARP, Families USA, National Partnership for Women and Families, Alliance for Retired Americans, American Nurses Association, Mental Health America, American Academy of Pediatrics, American Academy of Family Physicians, American Heart Association, American Diabetes Association, Children's Defense Fund, Catholic Charities, Easter Seals, and March of Dimes.

Berkley Bill Seeks to Focus More Resources on Treatment of Military Eye Injuries

CONGRESSWOMAN SHELLEY BERKLEY (D-NV) today [September 25, 2007] called for swift action on new bipartisan legislation she is cosponsoring that will improve the care of American military personnel affected by combat eye trauma and aid those suffering vision damage associated with Traumatic Brain Injury (TBI).

“Large numbers of our troops deployed in Iraq and Afghanistan are suffering eye injuries in combat and this bill will address the need for a comprehensive approach by VA and the Defense Department to better care for our wounded and recovering forces,” said Berkley, a member of the House Committee on Veterans Affairs.

“Eye related injuries are also affecting many of our veterans, especially those who suffered a traumatic brain injury while in the service of our nation. The needs of these veterans and our active duty military forces is the reason that Congress must act now to focus resources on the diagnosis, treatment and prevention of military eye injuries. Eye injuries are some of the most common wounds experienced by our military forces and these heroes, along with our veterans, deserve the best prevention, care and rehabilitation services our nation can provide,” said Berkley.

The Military Eye Trauma Treatment Act, H.R. 3558, seeks to address the increasing number of eye-related injuries among troops serving in Iraq and Afghanistan and develop a permanent framework to aid injured troops and veterans with combat-related vision damage. The bill would create a Center of Excellence within the Department of Defense specifically devoted to the prevention, diagnosis, mitigation, treatment and rehabilitation of military eye injuries. Research shows that serious eye wounds are among the most common injuries incurred by those fighting in current conflicts.

The primary responsibility of the Center of Excellence would be the development of a “Military Eye Injury Registry,” containing up-to-date information on the diagnosis, treatment and follow-up for each serious eye injury received by any member of the armed forces while serving on active duty. The Registry will include input from optometrists and ophthalmologists from both the Department of Defense (DOD) and the Department of Veterans Affairs (VA).

Statistics show that over half of those treated at Walter Reed Army Medical Center and diagnosed with TBI also experience vision damage while upwards of 70 percent with brain injuries at the VA Polytrauma Rehabilitation Center in Palo Alto, CA, reported vision problems as well. Between October 2001 and June 2006, over 1,000 troops with combat eye trauma were evacuated from overseas military operations, making serious eye wounds one of the most common types of injury experienced in current U.S. conflicts.

The Military Eye Trauma Act also requires a joint DOD-VA program for servicemembers and veterans affected by visual dysfunction related to Traumatic Brain Injury. The treatment of TBI and the vision issues deriving from it are important issues for military personnel. Requirements in the bill will allow sharing of information and greater coordination between the VA and DOD to ensure effective treatment for injured troops and veterans

Companion legislation to the Berkley eye trauma bill has also been introduced in the Senate by Sens. John Kerry (D-MA), Chuck Hagel (R-NE), Barack Obama (D-IL) and Pete Domenici (R- NM).