Author: Joe Donnelly

Elkhart, IN – Today, Congressman Donnelly visited the Wells Cargo manufacturing facility of Universal Trailer to talk about his bill, the Targeted Job Creation and Business Investment Act, H.R. 4965, and his efforts to protect and encourage new jobs in north central Indiana.  His jobs plan consists of three parts: targeted tax cuts, holding China accountable for currency manipulation, and protecting American jobs for people who play by the rules.

“Jobs are my first priority, and my jobs plan consists of targeted initiatives that will work,” said Donnelly.  “The federal government should, for the most part, stay out of folks’ way and let our Hoosier entrepreneurs get to work.  There are, however, a few things we can do.  We can encourage businesses to hire, purchase equipment, and innovate with smart tax credits, which is what my bill does.  We can also assist American companies and workers—particularly in the manufacturing sector—by stopping China’s unfair currency manipulation, and we can protect American jobs by ensuring that available jobs go to folks who play by the rules.  We can help the recovery in north central Indiana by making sure our local businesses have the tools they need, and these initiatives can help.”

“Our trailer companies, Wells Cargo and Haulmark, are very appreciative of Congressman Donnelly taking the time to personally work with Elkhart County businesses in an effort to save and create jobs,” said Tom Frey, President/CEO of Universal Trailer Corporation.  “Forging programs that will actually create jobs takes substantial work. It is time consuming to meet face to face with businesses out here on ‘Main Street.’  But this hard work is critical if Elkhart is to realize the job growth we are both striving for.  I believe that the voice of Main Street must be a central consideration if the public sector’s efforts are to be successful in helping private-sector businesses grow jobs again in Elkhart County. We’re pleased that Congressman Donnelly is willing to devote the time to listen to our ideas and the work to bring them forward into a process of crafting effective legislative programs.”

On March 25, 2010, Congressman Donnelly introduced the Targeted Job Creation and Business Investment Act, H.R. 4965, which includes four tax credits designed to benefit north central Indiana businesses.  First, all companies would be eligible for a tax credit for hiring a new worker in an economically distressed area.  This job creation tax credit would refund 15% of new wage costs in 2010 and 10% of new wage costs in 2011. “Economically distressed” would be categorized as counties with an unemployment rate of 8.5% or higher, the same threshold as states that currently receive extra unemployment benefits.  All 12 counties in Indiana’s Second Congressional District would qualify currently.  The tax credit would be available only to employers who expand the part of their payroll subject to Social Security tax, ensuring that workers are not laid off in order to hire new workers to obtain the credit.  This tax credit would be available quarterly in order to encourage quicker hiring, and would be refundable in order to allow non-profits to take advantage of the credit.

The second provision in the Targeted Job Creation and Business Investment Act would make the research and development (R&D) tax credit permanent.  By encouraging investment in R&D, this credit would foster American businesses’ competitiveness in an increasingly global marketplace.  A permanent extension would give companies certainty in the tax code, which would enable them to better plan research endeavors and would encourage companies to keep their R&D initiatives on American soil.

Third, Congressman Donnelly’s Targeted Job Creation and Business Investment Act would make two deductions: the bonus depreciation and enhanced expensing deductions permanent.  The 50% bonus depreciation would allow a business to invest in equipment and speed up its depreciation, allowing businesses to more quickly recover their capital expenditure costs.  Enhanced expensing would allow small businesses to immediately write-off up to $250,000 in qualified investment for capital expenditures such as machinery, equipment, and business software.  Permanent extensions would allow companies to better plan for new investments.

Donnelly also discussed his strong support for cracking down on China’s unfair policies that give that country a competitive advantage.  Currently, China manipulates its currency by undervaluing it.  Economists estimate the yuan is undervalued by anywhere from 15 to 40 percent.  This causes not only an increased trade deficit with China, but also contributes to American jobs loss as the prices of Chinese imports are artificially held down, undercutting American goods.

Congressman Donnelly is a cosponsor of H.R. 2378, the Currency Reform for Fair Trade Act, which would neutralize the negative effects of misaligned foreign currency by allowing affected American industries and their workers to seek remedies under current trade laws.  The bill also would use publicly available data to determine the misalignment in a transparent way, apply a fair and predictable standard for currency misalignment, and create an incentive for foreign governments to stop unfair trade practices to prevent similar abuses in the future.  Congressman Donnelly, with other Members of Congress, has also sent several letters to both the Bush and Obama Administrations on this issue.  In November 2009, Congressman Donnelly joined colleagues in sending a letter to President Obama regarding inaction by the Obama Administration against China’s continued manipulation of its currency. 

Finally, Donnelly spoke about the need for securing our borders and preventing undocumented workers from getting jobs in the U.S.  Congressman Donnelly is an original cosponsor of H.R. 3088, the SAVE Act, which would protect American jobs by expanding the Department of Homeland Security’s E-Verify program, which is an Internet-based system that allows an employer, using information reported on an employee’s Employment Eligibility Verification form, to determine the eligibility of that employee to work in the United States.  The SAVE Act would make E-Verify mandatory for all employers, hire 6,000 more Border Patrol agents, and expedite the processing and removal of illegal aliens. 

Congressman Donnelly will continue to tour north central Indiana businesses today and tomorrow as a part of his jobs agenda tour.  Later today, he will visit the Entrepreneur Center in Michigan City.  Tomorrow, he will visit Inventrek Park in Kokomo, Creative Promotions in Logansport, and Rochester Medical Implants in Rochester.

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South Bend, IN – Today, Congressman Joe Donnelly issued the following statement regarding the Obama administration’s proposal to open large areas of water off the Atlantic coastline, in the eastern Gulf of Mexico, and along the north coast of Alaska to oil and natural gas drilling.

“I welcome today’s announcement, because I’ve been calling for expanded offshore drilling for years,” said Donnelly.  “We need an all-in energy policy, and I’ve been a part of a bipartisan group of lawmakers calling for expanded drilling, increased use of safe nuclear power, and other American energy initiatives since the last Congress.  By exploring the energy resources we have here at home, we will create American jobs and reduce our reliance on Middle Eastern oil dictators.”

Congressman Donnelly voted to allow new oil and gas exploration by supporting H.R. 2638 in September 2008.  He is also an original co-sponsor of the American Conservation and Clean Energy Independence Act, H.R. 2227, which would establish an all-in American energy policy, through initiatives such as investments in alternative energy, tax incentives for clean energy production, and modernizing the fuel mix in the Strategic Petroleum Reserve.

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Washington, D.C. – Today, a small business tax fix championed by Congressman Joe Donnelly passed the House of Representatives as a part of the Small Business and Infrastructure Jobs Tax Act of 2010, H.R. 4849.  Many folks have never heard of 6707A, and until two years ago, neither had Congressman Donnelly.  That was when he learned that a small business owner in his district was facing business-ending fines because he failed to disclose to the IRS for payments he made to a type of insurance policy which the IRS would list two years after he initially started the policy. 

The owner of an asphalt paving company employing four people, he was assessed $600,000 in penalties for unknowingly failing to alert the IRS of the transaction that resulted in a total tax savings of $38,000 over two years.  While he has since fully paid his back taxes to the IRS, these mandatory penalties, which the IRS is required by law to enforce without exception, would now bankrupt him for a simple filing error.  In response, last spring Congressman Donnelly introduced legislation supported by 13 Republicans and Democrats to make 6707A penalties proportionate and fair, and it earned the support of the U.S. Chamber of Commerce, the National Federation of Independent Businesses, and the Small Business Council of America.

“Today, we’ve taken a big step forward in fixing a tax penalty that is inherently unfair to small businesses that make a simple mistake,” said Donnelly.  “I have worked closely with Congressman John Lewis, the Chairman of the House Ways and Means Oversight Subcommittee, to get this fixed.  He also introduced legislation to fix this problem and guided it through committee.  His bill, which I strongly support, was included in today’s small business relief package.  We would not have come this far without his leadership and assistance.  If signed into law, this bill will allow countless small business owners to stay in business, keeping thousands of Americans on the job.”   

“I want to thank Rep. Joe Donnelly,” said Oversight Chairman John Lewis, “for his support on this issue.  The people of Indiana’s 2nd District have sent a champion for their issues to the Congress, and he represents them well.”

"We appreciate Representative Donnelly’s efforts to fix an onerous penalty on small business owners who inadvertently failed to file a form with the IRS,” said Brad Close, National Federation of Independent Businesses (NFIB) vice president, federal public policy.  “The ‘listed transactions’ fix in H.R. 4849 will reduce excessive penalties on small business owners, which is especially important as small firms struggle to keep their doors open.  Rep. Donnelly has worked tirelessly to provide relief to small businesses wrongfully impacted by this unfair penalty, and we appreciate his efforts on this important issue."

Background on the 6707A IRS Penalty
Created in response to legislation passed by Congress in 2004, Internal Revenue Code section 6707A imposes a strict penalty of $100,000 per individual and $200,000 per entity for failing to report a number of financial transactions identified by the IRS as potentially abusive.  The penalty is not for the activity “listed” by the IRS, per se, but for failing to notify the IRS that a taxpayer has entered such a transaction.  At the time, it was common that such transactions involved hundreds of millions of dollars, which is why the mandated penalties are so high.  Since enforcement began, many larger corporations have curtailed their abusive use of the most common listed transactions.  Unfortunately, compliance with this particular law requires a special knowledge of the tax code that many average small business owners may not possess.  The list of transactions is regularly amended, and as a result, a growing number of small businesses have unknowingly violated this provision resulting in massive penalties that are wildly disproportionate to any tax benefit they accrued.

The author of the original provision, Senator Charles Grassley, has since stated: “I did not intend to bankrupt small businesses that had no ill intent…the penalty should be commensurate with the transgression.”  In its 2008 Annual Report to Congress, the IRS Taxpayer Advocate urged Congress to fix the inherently unfair structure of the penalty, stating: “It is rare that a tax provision is found to violate the United States Constitution, but we believe the imposition of such a large penalty on a taxpayer who entered into a transaction that produced little or even no tax savings and without regard to the taxpayer’s knowledge or intent raises significant constitutional concerns.”  Further, on July 6, 2009, IRS Commissioner Douglas Shulman wrote to the Ways and Means Committee that he was “dismayed” to hear of the impact of 6707A on small business owners and that certain taxpayers “were caught up in a penalty regime in a way that the legislation did not intend…” 

The legislation passed today by the House of Representatives would make IRS Section 6707A penalties proportional to the amount of tax benefit accrued as a result of the activity “listed” by the IRS.  This will bring 6707A penalties more in line with traditional IRS penalty structures.  Specifically, the penalty would be 75 percent of the tax benefit received, with a minimum penalty of $10,000 for corporations and $5,000 for individuals, and a maximum penalty of $200,000 for corporations and $100,000 for individuals.  The Small Business and Infrastructure Jobs Tax Act of 2010 is now sent to the Senate for its consideration.

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To watch a video of Congressman Donnelly’s floor speech in support of the Small Business and Infrastructure Jobs Tax Act of 2010, please click here.

Washington, D.C. – Today, Congressman Joe Donnelly announced his support for the Patient Protection and Affordable Care Act, H.R. 3590, and the Reconciliation Act of 2010, H.R. 4872, which together are a compromise between the House and Senate on reforming health insurance in our country.  Rep. Donnelly released the following statement regarding his vote:

“From the beginning of this debate, I’ve remained consistent in fighting for the principles I believe should be a part of health insurance reform.  We need to prohibit insurance companies from denying coverage to folks who suffer from serious illnesses and we need to extend the life of Medicare.  We need to lower the costs of health insurance that are squeezing families and small businesses and we must allow people to keep the insurance they have—if that’s what they want to do.  We need to ensure that any reforms prohibit the use of federal funds for abortion-related services and do not add to the national debt.  The House bill, the America’s Affordable Health Choices Act, which I voted for in November, did all of these things.  The legislation in front of the House today, in tandem with the executive order that will be signed by the president today, also meets the principles I’ve talked about since the beginning of this debate.

I expressed opposition to the Senate bill over the past few months because it did not meet my standard for prohibiting the use of federal funds for abortion-related services.  Unfortunately, the Senate has refused to pass language I helped pass through the House last year to maintain traditional prohibitions against federal funding for abortions.  Today, the president will sign an executive order that increases the protections in this bill to make sure that the Hyde Amendment, our current law, is upheld throughout the entire health insurance reform bill.  The executive order will ensure that no tax credits or cost-sharing reduction payments will be used for abortion-related services in the insurance exchange and ensures that federal community health center funding is subject to the Hyde Amendment.  As a pro-life congressman, I will continue to act according to my deeply-held beliefs and those of my constituents.  I believe that means opposition to abortion as well as improving access to health care for all people.

I will be supporting health insurance reform today because we need to level the playing field between Hoosier families and insurance companies.  Back home in Indiana, some of our friends and neighbors have been hit recently with skyrocketing premium increases as high as 51 percent.  Currently, insurance companies deny coverage to cancer survivors, folks with diabetes, and children with epilepsy.  Right now, insurance companies cap the amount of money they will spend on a person’s health care benefits, leaving many families to face bankruptcy as a result of catastrophic illness.  The legislation I will vote for today would put an end to these practices.

It would also improve the health care system in this country by making coverage more affordable for those with insurance and by extending coverage to 32 million Americans who are currently uninsured.  Starting today, children with preexisting conditions like epilepsy or juvenile diabetes would no longer be denied coverage.  Seniors would experience immediate savings in name-brand drugs as we close the Medicare “donut hole” in prescription drug coverage.  Out-of-pocket health care costs would be capped so no more families face bankruptcy because of health care costs.  For the first time, someone who lost their job through no fault of his or her own would be able to get insurance for their family.

Perhaps equally important in these challenging economic times is getting our fiscal house in order, and the bill I will support today does just that.  This bill helps our fiscal future because it would not add to the national debt.  In fact, it would reduce our deficit $138 billion over the next 10 years and $1.2 trillion over the next 20 years.”

The House is expected to vote on health insurance reform later today.

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To read a summary of how this legislation would benefit folks in Indiana’s 2nd Congressional District, please click here.
To read the Patient Protection and Affordable Care Act, H.R. 3590, please click here.
To read the Reconciliation Act of 2010, H.R. 4872, please click here.  A summary of the reconciliation bill can be found here.
To read the president’s executive order further strengthening the Hyde Amendment language in the health insurance reform bill, please click here.

Washington, D.C. – Today, Congressman Joe Donnelly introduced the Forecast for the Future Act of 2010 with the support of 21 colleagues, which would require every federal budget moving forward to include a 75 year net present value projection of our obligations to mandatory entitlement programs.  In 2009, the Department of the Treasury projected entitlement spending at approximately $62 trillion in current dollars over the next 75 years.  Currently, the budgeting process does not require Congress or the Administration to acknowledge these commitments, and Donnelly’s bill would require these long-term obligations to be transparent in the federal budgeting process.   

“This common-sense reform is one piece of my larger effort to get our fiscal house back in order,” said Donnelly.  “In order to get a fuller picture of our fiscal future, we need to acknowledge our long-term commitments to entitlement programs.  This isn’t a radical idea; the Financial Report of the United States from the Department of the Treasury reports these numbers each year.  What’s important is that we include these numbers in the annual budget so that we all have a fuller understanding of how the budgets we vote on today affect our grandchildren tomorrow.”

Donnelly is a member of the fiscally conservative Blue Dog Coalition, and his bill is part of the Blue Dog Coalition’s Blueprint for Fiscal Reform, designed to get us back to the days of budget surpluses.  Rep. Donnelly has supported many bills within the blueprint, including the Statutory Pay-As-You-Go Act, H.J.Res. 45, signed into law in February, which requires Congress to offset any new spending or tax cut with savings elsewhere.  He also supports the Balanced Budget Amendment, H.J.Res. 78, which calls for an amendment to the U.S. Constitution requiring Congress to balance the budget each year.  He supports the Improper Payments Elimination and Recovery Act of 2009, H.R.3393, which would cut wasteful spending from government agencies.  Last week, Congressman Donnelly supported the introduction of caps on federal spending, also a part of the Blue Dog blueprint.  These caps would cut non-security spending by nearly 6%, saving American taxpayers $400 billion over 10 years.  Congressman Donnelly has been a consistent voice to keep government spending in check, voting against hundreds of billions of dollars in new spending since coming to Congress.

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Washington, D.C. – Today, Congressman Joe Donnelly announced his support for The Officer Daniel Faulkner Children of Fallen Heroes Scholarship Act of 2009, H.R. 959.  This bill would offer financial assistance for higher education to the children of police officers, firefighters, and other first responders who made the ultimate sacrifice in the line of duty.  

“We must take care of the children of our fallen heroes,” said Donnelly.  “While making a college education possible for these children is only a small gesture, I believe that it is one of the many ways we can honor our Hoosier first responders who serve selflessly and give their lives so that we might be safe.”

“When officers make the ultimate sacrifice, it is sometimes difficult for their families to make ends meet, let alone send their kids to college” said Sgt. Dave Beaty, President of the South Bend Fraternal Order of Police.  “This would be very beneficial to those families to have the access to this funding.  This is a great way to thank the officers for their sacrifice and to give their kids an education.”

Under this bill, a child of a fallen police officer, firefighter, or other first responder would become automatically eligible for the maximum level Pell Grant available.  The maximum grant award is now $5,400.  This legislation would waive the income eligibility requirements for all children of these fallen heroes and provide them access to the full $5,400 award.

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Washington, D.C. – Today, Congressman Joe Donnelly welcomed the release of $200,000 in pre-disaster mitigation funds to the City of Plymouth from the Indiana Department of Homeland Security.  Congressman Donnelly helped the City of Plymouth secure these funds back in 2008, but only yesterday did the state of Indiana release the funding to the city’s bank account.  The grant that Plymouth received allowed the city to buy several homes and remove structures in the worst of the Yellow River flood area, thus reducing the likelihood of damage and high costs associated with future flooding of the river.

“I am relieved to see that the City of Plymouth finally has the funds it was owed to reduce the costs of flood damage in the future along the Yellow River,” said Donnelly.  “I am disappointed that the Indiana Department of Homeland Security office took so long to get the city its funding, but I am pleased that the issue is finally resolved.  Mayor Senter and the rest of the Plymouth community have worked tirelessly on this project, and I know their hard work will help reduce the price tag of flooding in the future.”

“It’s a long time coming and it has been frustrating,” said Plymouth Mayor Mark Senter.  “Overall, it will help this community mitigate the flood situation in Plymouth.  Obviously we want to do more of these projects but we hope it goes more quickly in the future.  I appreciate everything Congressman Donnelly did and that his staff did to push this along.”

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Washington, D.C. – Today, Congressman Joe Donnelly released the following statement after joining a majority in the House to defeat a resolution introduced by Rep. Dennis Kucinich calling for the president to withdraw all U.S. troops from Afghanistan within 30 days. 

“I recently visited our troops in Afghanistan, and we’re making progress,” said Donnelly.  “Our marines and soldiers are in the middle of a major campaign against Taliban strongholds now and we have seen some important apprehensions of Taliban and al-Qaeda operatives on both sides of the Afghanistan-Pakistan border.  We will not be in Afghanistan forever, and I know that the fight is not easy and not without a price.  But I strongly disagree with Rep. Kucinich’s call to remove all our forces right now.   It’s the wrong call for our efforts to combat terrorism and to establish some stability in Afghanistan.”

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Mishawaka, IN – Today, Congressman Joe Donnelly warned seniors across north central Indiana about a misleading mailing asking them to pay to provide their responses to a “census.”  An organization called the Council for Retirement Security has sent surveys entitled the “National Census of Senior Citizens” to several seniors in the area asking for their responses and credit card information.  Some surveys had Rep. Donnelly’s name on the front of the mailing.

“The National Census of Senior Citizens is not affiliated with the U.S. Census Bureau, or my office, in any way,” said Congressman Donnelly.  “This is a misleading scheme to trick seniors into providing their credit card information.” 

The Council for Retirement Security is affiliated with another organization called Our Generation.  Our Generation’s website is nothing more than a blog.  To view an example of this misleading mailing, click here.

This morning, Donnelly sent a letter to the National Census of Senior Citizens asking them to remove his name from their mail pieces and acknowledging that the Indiana Attorney General’s office had already warned Hoosiers about this misleading mailer back in 2007.  To read Congressman Donnelly’s letter to the organization, click here.

The U.S. Census Bureau will never ask for money or a donation, for your full social security number, send requests on behalf of a political party, or request PIN codes, passwords or similar access information for credit cards, banks or other financial accounts.  Congressman Donnelly encourages recipients of the mailer to contact the Indiana Attorney General’s Consumer Protection Division at 1-800-382-5516 or online: http://www.in.gov/attorneygeneral/2434.htm.

Congressman Donnelly and all other local, state, and federal officials always wish to hear from their constituents.  Congressman Donnelly’s office is available both in Indiana and in Washington by phone, email, fax, regular mail, or in person.  Hoosiers should never pay to have their opinion known.

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Washington, D.C. – Today, National Journal Magazine rated Congressman Joe Donnelly the 8th most conservative Democrat in the U.S. House of Representatives.  National Journal ranks every member of Congress based on key economic, social, and foreign policy votes each year. 

“Since coming to Congress, I’ve pledged to put the needs of north central Indiana first,” said Donnelly.  “I am not here to vote with any particular political party—I’m here to vote on behalf of Hoosiers back home.”

This ranking is consistent with Congressman Donnelly’s established record of putting the needs of his district before political party affiliation.  Earlier this year, Congressional Quarterly rated him the 13th most independent Democrat in the U.S. House of Representatives in 2009, according to their ratings formula.

For the complete 2009 Vote Ratings Article from National Journal Magazine, including rankings for the House of Representatives, Senate, and explanation of the ratings process, please click here.

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Washington, D.C. – Today, Congressman Joe Donnelly and Senator Evan Bayh introduced two pieces of legislation supporting the RV industry.

Donnelly and Bayh were successful in including a tax deduction for new motor homes in last year’s American Recovery and Reinvestment Act, but the benefit expired at the end of 2009. To continue to protect jobs throughout Indiana’s important RV industry, today they introduced legislation that would renew for two more years the tax benefit for new motor homes and also expand it to include new towable RVs and slide-in campers. The legislation would make amounts paid on state sales and excise taxes deductible and could be claimed on up to $49,500 of the price of a new purchase. The tax relief could be claimed by both itemizers and non-itemizers, and could save them up to $1,100.

“Making new RVs more affordable for two additional years will assist the RV industry in bouncing back from this recession," said Donnelly. "We are seeing positive results from last year’s tax benefit, but we’re not out of the woods yet. By continuing to provide tax relief to new customers, we will protect and create jobs in north central Indiana."

“With the RV industry adding jobs and showing signs of recovery, now is the time to ensure the momentum continues,” Bayh said.  “Elkhart County is the ‘RV capital of the world,’ and Congress must do more to nurture the industry’s recovery.  This legislation builds on last year’s important tax relief to protect and grow RV sales and create jobs for the hard-working Hoosiers who keep this industry moving forward.”

"Continuing the sales and excise tax deductions for motor homes and expanding this provision to include travel trailers and truck campers are exactly what the RV industry needs," said Recreation Vehicle Industry Association (RVIA) President Richard Coon.  "It will improve the economic environment in our industry, stimulate RV sales and help speed the RV market’s recovery."

Senator Bayh and Congressman Donnelly also introduced H.Res.1073/S.Res.410, a resolution honoring the 100th anniversary of RVs.

"I’m proud to represent the ‘RV capital of the world,’ which has benefited the north central Indiana economy for years," said Congressman Donnelly. "I am pleased to recognize the 100th anniversary of a vehicle that has brought both jobs and recreation to our area."  Congressman Donnelly received the National Legislative Award from the RVIA in 2009.

“The RV industry is an important driver for Indiana’s economy and an important source of recreation for families across the country,” Bayh said.  “I congratulate the RV industry on its first 100 years, and I look forward to even more success in the years to come.”  In 2009, Senator Bayh received the National Legislative Award from the RVIA.
 

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Washington, D.C. – Today, Congressman Joe Donnelly announced the start of common-sense consumer protections against unfair credit card practices through the CARD Act, H.R. 627.  Known as the Credit Cardholder’s Bill of Rights, H.R. 627 passed the House with Donnelly’s support and was signed into law in May 2009.  The bill prohibits unfair interest rate increases and requires credit card companies to provide consumers with unprecedented levels of transparency in their card agreements.

“For too long, many credit card companies have used confusing and unfair practices that have contributed to the debt that many families now carry,” said Congressman Donnelly.  “The common-sense rules starting today will provide middle class families with the tools they need to make informed decisions about their finances.”

Starting today, credit card companies are required to give 45 days’ notice before increasing interest rates, changing certain fees, or making other important changes to the terms of a consumer’s card. Also, credit card companies are prohibited from increasing interest rates on existing balances.  Any interest rate increase can only be applied to new purchases, meaning cardholders now have the option to close out an account when interest rates are unexpectedly raised. 

Additional changes credit cardholders can expect include:
 

• Credit card companies can no longer charge interest on debts paid on time.
• Interest rate hikes on existing balances are prohibited, and can only be applied to future purchases.
• Credit card bills must provide information to clearly explain how long it will take to pay off the balance by making only minimum payments.
• Credit card companies will be restricted from allowing over-the-limit transactions without informing you.
• Any changes to a cardholder’s billing will require a statement explaining those changes at least 21 days before the payment is due.
   

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Washington, D.C. – Today, Congressman Joe Donnelly announced a $25,140,315 grant for Ivy Tech campuses across Indiana to connect to the existing I-Light broadband network for Indiana education and research.   The 21 Ivy Tech campuses benefitting from this funding include Elkhart, Michigan City, Kokomo, and the future Logansport campus.  The grant, funded through The American Recovery and Reinvestment Act supported by Congressman Donnelly last spring, is part of the U.S. Department of Commerce’s Broadband Technology Opportunities Program (BTOP). 

“Increasing broadband access will not only benefit the students at Ivy Tech, it will also impact surrounding communities,” said Congressman Donnelly.  “Expanding access to broadband is absolutely crucial if Hoosier communities, entrepreneurs and schools are to compete and be successful in the 21st Century.  I welcome this funding to our area and look forward to folks taking full advantage of the increased online educational options that Ivy Tech will be able to provide.”

“I’m excited about this opportunity,” said Thomas J. Snyder, Ivy Tech President.  “This is not only great for our students; it is great for our entire state.  I appreciate the support from Indiana’s congressional delegation, and I thank Congressman Donnelly for supporting this project which will benefit all Hoosiers.”

The BTOP is a program through the U.S. Department of Commerce’s National Telecommunications and Information Administration (NTIA) and was created by the Recovery Act to provide grants to support the deployment of broadband infrastructure in unserved and underserved areas, enhance and expand public computer centers, and encourage sustainable adoption of broadband service.  The I-Light is the State of Indiana’s optical fiber network for higher education, and intends to connect every college and university in Indiana.

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Elkhart, IN – Today, Congressman Joe Donnelly met with Small Business Administration (SBA) officials and small business owners from across north central Indiana to discuss several ways our small businesses can more easily access credit.  SBA Associate Administrator for the Office of Capital Access Eric Zarnikow from Washington, D.C. and SBA Regional Administrator Marianne Markowitz from Chicago came to hear from north central Indiana small businesses on how the SBA can better assist them through existing or new programs.

“In these tough economic times, one of the ways our Hoosier small businesses can be successful is through increased access to capital,” said Congressman Donnelly.  “I invited SBA officials to north central Indiana to talk to our business owners and see how we can get them the resources they need to invest in new equipment and hire new workers.”

“We know that if we give small businesses the tools they need, they will create jobs in communities all across the country,” said Marianne Markowitz, SBA Regional Administrator.  “One of the most important tools is capital, which small businesses need not only as they weather this tough economic time, but also for when they’re ready to grow.  Over the past year, SBA has supported over $408 million dollars in Recovery Act loans to Indiana small businesses which have helped save jobs and create thousands of new ones.  But we know there is more work to be done and continue to work with the President and Congress to provide additional tools, including tax relief and new programs to further increase small business lending.”

First, Congressman Donnelly and SBA officials met with retailers and manufacturers of RVs and marine products and banks to discuss ways in which the SBA’s new floor plan financing program could be improved.  The program, Dealer Floor Plan Financing, was created in July 2009 to assist these businesses in getting loans to finance their inventories.

“Roundtables like this one hosted by Congressman Donnelly are an important way not only for small businesses to learn about the resources SBA has to offer, but also for us to hear from small businesses about how we can continue to strengthen our loan programs and other support,” said Eric Zarnikow, SBA Associate Administrator for the Office of Capital Access.  “Our Dealer Floor Plan Financing Pilot Program is one of the many tools we have deployed over the last year to help small businesses, and in this case auto, marine, and RV dealers, whether they’re trying to get back on their feet or looking to expand.”

Next, the Congressman and SBA officials met with small business owners from across north central Indiana at Mack Tool & Engineering in South Bend, where the group discussed how to secure SBA financing in a tight credit market including 504 and 7(a) programs for existing businesses and start-up enterprises.  Through the American Recovery and Reinvestment Act, signed into law last February, small businesses have increased opportunities to apply for 504 and 7(a) loans to help them invest in new equipment and hire additional workers.

Finally, the Congressman visited the Thanhardt Burger Corporation in LaPorte, to show the SBA officials one of our many successful Hoosier small businesses.  LaPorte Mayor Kathy Chroback, Greater LaPorte Economic Development Corporation Executive Director Tim Gropp, and Greater LaPorte Chamber of Commerce President Mike Seitz joined the group touring the small business.

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Washington, D.C. – Today, Congressman Joe Donnelly discussed his recent trip to Romania, Pakistan, Afghanistan, and Tunisia.  While in Afghanistan, Congressman Donnelly visited with U.S. troops serving there and gathered information on our military efforts.

“My primary focus was visiting with our men and women in uniform, to hear from them how they are doing and to learn about our progress,” said Congressman Donnelly.  “I have been to Afghanistan three times now, and I believe the current surge is providing our troops with the resources they need to be successful.  They are working tirelessly to stabilize the country and transfer security responsibility to the citizens of Afghanistan.”

Donnelly was part of a bipartisan group of representatives visiting South Asia.  Congressman Stephen Lynch (MA-9), Congresswoman Betty Sutton (OH-13), Congressman Bob Inglis (SC-4), and Congressman Todd Platts (PA-19) also participated in the trip.

The delegation first visited Romania to discuss terrorist financing, and then traveled to Pakistan to meet with government and military leaders to discuss the Taliban and al-Qaeda threats to Pakistan and Afghanistan.  Next, the delegation went to Afghanistan to meet with top military officials and troops on the progress of the U.S. mission.  Finally, the group visited Tunisia, where they paid respect to U.S. troops killed in the line of duty during World War II.

“My visit to Afghanistan gave me the unique opportunity to see our mission carried out on the ground,” said Congressman Donnelly.  “My first responsibility as north central Indiana’s Congressman is the protection of our country, and the information I gathered while overseas better informs the decisions I make in Washington.  I was pleased to see our men and women in uniform doing well, and to learn that we are making progress on our mission.  We are facing many challenges in Afghanistan, but our troops are working hard to stabilize the country and protect us from future terrorist threats.”

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Washington, D.C.—Today, Congressman Joe Donnelly joined members of the Disability Assistance and Memorial Affairs Subcommittee of the House Veterans’ Affairs Committee in introducing bipartisan legislation to reduce the time veterans must wait when they appeal a VA decision regarding their benefits.

“Our veterans who have sacrificed so much for our country should not have to jump through so many hurdles to appeal a benefits decision,” Donnelly said. “Often, the appeals process drags on for years, which is simply unacceptable. This bill will help streamline that process and ensure that our veterans can receive the benefits that they deserve in a timely manner.”

The Veterans Appeals Improvement and Modernization Act of 2009 would simplify both the administrative appeals process within the Department of Veterans Affairs and judicial review process through the Court of Appeals for Veterans Claims. By cutting out the regional office and having veterans report directly to the Board of Veterans Affairs, much of the bureaucracy that delays the benefits decision would be eliminated. In addition, the bill calls for the creation of a Veterans Judicial Review Commission to serve as an independent arbiter of the disability and survivor benefits claims process and suggest improvements.

Veterans may appeal the VA’s decisions on their claims for benefits and compensation.  Currently, approximately 178,000 appeals are pending before the VA, a process that can take years.

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Washington, D.C. – Today, Congressman Joe Donnelly released the following statement in advance of President Obama’s first State of the Union address.

“I hope the President focuses on the most pressing concern of Hoosier families: jobs,” said Congressman Donnelly. “We need to get folks back to work, and smart investments like tax credits for our small businesses to buy new equipment and hire more workers will help. I will continue to work with my colleagues on both sides of the aisle to make sure we’re putting American workers first. ”

“Also, I hope the President talks about ways we can protect the fiscal future of our country,” Donnelly said. “Washington has waited too long to take common-sense steps to reduce spending and shrink the deficit. I support common-sense reforms like the proposed freeze on discretionary spending for federal agencies. In fact, each year I’ve been in office I’ve voted against a budget because I thought the proposed increases in spending were too high. While a flat-funded budget won’t by itself get our budget back into balance, it is a sensible place to start.”

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Washington, D.C. – Today, Congressman Joe Donnelly sent a letter to House of Representatives Speaker Nancy Pelosi and Committee on Small Business Chairwoman Nydia Velasquez supporting an increase in the loan limits for the Small Business Administration (SBA) 7(a) loan guarantee program from $2 million to $5 million.  Donnelly sent the letter in response to feedback from small businesses in north central Indiana who depend on these loans to expand their businesses and create jobs.

“In these tough economic times, access to credit is one of the most important resources for a small business,” said Congressman Donnelly.  “The SBA 7(a) loan program has been an effective tool for many Hoosier businesses so far, but I know we can do more.  I will continue to advocate on behalf of Indiana businesses to Congressional leaders and to the SBA, because a strong small business sector is critical to getting our economy back on track.”

To read Congressman Donnelly’s letter to Speaker Pelosi and Chairwoman Velasquez, click here.

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Washington, D.C. – Today, Congressman Donnelly announced local veteran and Elkhart resident Sgt. Mitch Nihart of the Army National Guard as his guest for President Obama’s State of the Union address on Wednesday.  Sgt. Nihart served both in the first Gulf War and in Iraq in 2007 and 2008.

After many years of service in the Army, Nihart retired following the first Gulf War.  In late 2006, Nihart’s son Mitch Nihart, Jr. joined the National Guard with his father’s full support, and in 2007, Mitch, Jr. learned his unit would deploy to Iraq.  His son also mentioned that the National Guard was still looking for recruits.  Sgt. Nihart recalls his son saying, “Come on, Dad, we can do this together.”  Soon, Sgt. Nihart joined the National Guard.

Although he wasn’t able to serve directly with his son, Sgt. Nihart was able to visit with his son several times while they were both stationed in Iraq.  Also, the Niharts were able to overlap their leave for 12 days. 

“Our servicemen and women are our national heroes,” said Congressman Donnelly.  “Sgt. Nihart and his son’s example of selfless sacrifice is something we all can learn from.  I am proud to call Mitch a friend and thank him for his service.”

“I think that Congressman Donnelly is truly one of the greatest friends to soldiers, their families, and veterans than anyone who has had that seat in 20 years,” said Sgt. Nihart.  “He has always supported the families and the soldiers that were on deployments.  He has always made his office available to help us and we’ve certainly gotten a lot done in the last 3 years.”

Injured in Iraq, Sgt. Nihart now serves in a community-based warrior transition unit, or WTU.  Sgt. Nihart is able to work out of centers close to his home in Elkhart while continuing his medical care, and calls the WTU program one of the “greatest programs to come out for citizen soldiers and soldiers as a whole.”

President Obama will be delivering the State of the Union on Wednesday, January 27th at 9:00 p.m. EST.

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Washington, D.C.—Today, Congressman Joe Donnelly offered an amendment in the House Financial Services Committee to strengthen the oversight of credit rating agencies by making sure that an office created within the Securities Exchange Commission  to regulate credit rating agencies is given the necessary staff and broad rulemaking authority needed to perform its duties.

Investors rely on credit rating agencies to provide guidance as to the level of risk of an investment. In the wake of the September 2008 near-collapse of our financial system, many believed that inflated credit ratings largely contributed to the crisis.

“Credit ratings agencies perform an essential function in our financial system," Donnelly said. "That’s why it’s critically important that investors be able to rely on their ratings.  A common-sense system of regulation would go a long way toward ensuring these credit rating agencies don’t artificially inflate ratings in pursuit of profits.  My amendment will ensure that the people charged with enforcing such a system of regulation have the tools they need to do their jobs effectively.”    

The amendment was adopted by voice vote.

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