A House GOP Political Ploy -- Jeopardizing Stopping the Doubling of Student Loan Interest Rate by Using A Partisan Poison Pill As An Offset

Washington, DC, April 27, 2012

A House GOP Political Ploy -- Jeopardizing Stopping the Doubling of Student Loan Interest Rate by Using A Partisan Poison Pill As An Offset
The Choice Is Clear: Protecting Big Oil or Ensuring the Health of Women & Children

Key Points:

  • Today, the House will consider H.R. 4628, a political ploy by the House GOP Leadership - a bill that calls for preventing the increase in the student loan rate on July 1, and yet undermines any chance of bipartisan action to ensure the rate increase is blocked by insisting on an offset that undermines health care for women and children.
  • Democrats are pleased that on April 25 House Republicans abruptly changed course and endorsed preventing the student loan rate increase, after months of inaction. However, Republicans squandered a chance to build on a bipartisan consensus to act by using this unacceptable offset.
  • The Statement of Administration Policy states, -If the President is presented with H.R. 4628, his senior advisors would recommend that he veto the bill.- It also states, -Unfortunately, rather than finding common ground on a way to pay for this critical policy, H.R. 4628 includes an attempt to repeal the Prevention and Public Health Fund… Women, in particular will benefit from this Prevention Fund, which would provide for hundreds of thousands of screenings for breast and cervical cancer.-
  • Instead of closing the tax loopholes of Big Oil, Republicans are choosing to take billions of dollars that would be used to improve the health care of low-income and middle-income women and children to reduce student loan rates for low-income and middle-income college students. They are robbing Peter to pay Paul. It is the wrong choice for America.
  • The GOP bill completely repeals the Prevention and Public Health Fund, which would have a disproportionate impact on America's women and children. It means stripping away vital funding for breast and cancer screenings, childhood immunizations, and screening newborns for birth defects.
  • By contrast, House Democrats have introduced a responsible bill (H.R. 4816) to block the increase in the student loan rate. Unlike the GOP offset, the Democratic offset reflects the priorities of the American people - instead of undermining the health of women and children, the Democratic offset ends tax breaks for the Big Five oil companies, which are enjoying record profits.


  • The GOP repeal of the Prevention and Public Health Fund is opposed by nearly 800 organizations, including the American Lung Association, American Heart Association, American Academy of Pediatrics, and Association of Maternal and Child Health Programs.
  • House Republicans ignored the rate increase issue for months. Last week, Republicans adopted the Republican budget, which provided for the rate increase to proceed. Also, key House Republicans expressed opposition to blocking the rate increase. -Extending the low rate would be too costly, [Chairman John] Kline said. ‘We must now choose between allowing interest rates to rise or piling billions of dollars on the backs of taxpayers,' he said.- [New York Times, 4/20]

I. It is Critical that Congress Act to Stop the Doubling of the Student Loan Rate on July 1

· Democrats are committed to enacting legislation before the July 1st deadline that will block the doubling of the student loan rate.

· Congress should not be building more hurdles for young people to get the education or the skills needed to succeed.

o The interest rates on more than 7 million students will double to 6.8 percent on July 1st.

o Every year Congress doesn't act will cost a student borrower $1,000 in additional repayment costs.

o Failure to act now will add $6.3 billion to students' debt burden in one year alone.

· The doubling of loan rates will hit students at a time when they can least afford it.

o Young Americans have the highest unemployment rate of any other group.

o Two-thirds of the Class of 2010 graduated with student loan debt.

o Those graduates left school with an average of $25,000 of student loan debt.


II. GOP Offset Is Unacceptable: Undermining the Health of Women and Children, By Repealing The Prevention and Public Health Fund

Repealing Prevention and Public Health Fund Would Disproportionately Harm America's Women and Children

The Prevention and Public Health Fund is designed to assist community efforts to prevent disease, detect it early, and manage conditions before they become severe - and it has been particularly important for America's women and children.

· The importance of the Fund for women and children is highlighted by some of the key priorities receiving funding through the Fund. For example, under the President's FY 2013 budget proposal, the Prevention and Public Health Fund would provide:

o $143 million for breast and cervical cancer screenings;

o $107 million for programs to address birth defects, including screening of newborns for hearing loss and congenital heart defects; and

o $72 million for childhood vaccinations.

· Similarly, according to the Association of Maternal and Child Health Programs, following are some planned Prevention and Public Health Fund investments for FY 2012 to improve the health of women and their families:

o Reversing the Obesity Epidemic Among Women of Reproductive Age ($236 million):The increasing prevalence of overweight and obesity among women of childbearing age is a growing public health concern. The Community Transformation Grant program, which is a centerpiece of the Prevention Fund, is supporting state and local efforts to promote nutrition and physical activity and reduce obesity, which will improve the health of women of childbearing age and promote healthy birth outcomes.

o Preventing Disease through the 317 Immunization Program ($190 million): Routine childhood immunizations prevent 14 million cases of disease and 33,000 deaths every year, resulting in an annual cost savings of $9.9 billion in direct medical costs and an additional $43.3 billion in indirect costs. These investments will help moms have the peace of mind that their children are protected from preventable disease.

o Protecting Moms and Babies from Tobacco ($93 million): Tobacco use during pregnancy increases the risk of spontaneous abortion, ectopic pregnancy, low birthweight, Sudden Infant Death Syndrome, premature birth, and other fetal and maternal complications. Funding for the Prevention and Public Health Fund is being directed toward tobacco prevention programs including media and quit lines reaching women of childbearing age.

Repealing Prevention and Public Health Fund Will Increase Health Care Costs

· A report from Trust for America's Health entitled -Prevention for a Healthier America- concluded that there is more than a five-to-one return on investments in public health. Specifically, the report concluded that investing $10 per person per year in proven community-based programs that increase physical activity, improve nutrition, prevent smoking and other tobacco use could save the country more than $16 billion annually within 5 years. That is a return of $5.60 for every dollar.

Repealing Prevention and Public Health Fund Is Opposed by Nearly 800 Organizations

The GOP repeal of the Prevention and Public Health Fund is opposed by nearly 800 organizations, including the American Lung Association, American Heart Association, American Cancer Society Cancer Action Network, American Academy of Pediatrics, Association of Maternal and Child Health Programs, National Association of Children's Hospitals, and Voices for America's Children. Here is what a few groups have stated.

· American Lung Association: -Because of the Prevention Fund, states and communities are now able to help more people quit smoking through cessation programs and preventing and treating lung diseases, including COPD, lung cancer, and asthma. … Prevention programs work. Prevention saves lives and keeps people healthy. Congress must not play politics with our nation's health. The American Lung Association strongly urges Congress to reject this absurd choice.-

· National Partnership for Women & Families: -Already there are several key initiatives funded by the Prevention and Public Health Trust Fund that are benefitting women including: 1) Chronic Disease Prevention: to enable communities to use evidence-based interventions to reduce chronic conditions and prevent heart attacks, diabetes, strokes, cancer, and other conditions that impact women; 2) Obesity Prevention and Fitness: to improve nutrition and increase physical activity to reduce obesity-related conditions and health care costs.-

· Association of Maternal and Child Health Programs: -[States] rely heavily on the Section 317 Immunization program to vaccinate underserved children. Repealing the Prevention and Public Health Fund would strip $190 million from the program in FY 2012 alone. We cannot make up that loss, leaving thousands of children without vital immunizations.-

III. Democratic Offset Is Supported by American Public: Getting Rid of Tax Breaks for Big Oil

· Unlike the Republicans, House Democrats have proposed a responsible bill to block the increase in the student loan rate - using an offset that the American public supports.

· On April 25, House Democrats introduced H.R. 4816 (Rep. Tierney), which stops the doubling of the student loan rate on July 1 and is paid for by ending certain tax breaks for Big Oil.

· The Democratic bill would eliminate a 2004 manufacturing subsidy for the Big Five oil companies, which is unwarranted and unnecessary - at a time of record profits for the Big Five.

o The five largest oil companies took in a record $137 billion in profits last year, after raking in nearly $1 trillion in the previous decade.

o This week, ExxonMobil reported that it made $9.45 billion in profits, or almost $104 million per day, in the first three months of this year.

The oil industry receives $4 billion in tax breaks per year.