The Incredible Timing of ObamaCare and the GSE Net Worth Sweep

On July 7, 2016, the House Ways and Means Committee issued a

JOINT CONGRESSIONAL INVESTIGATIVE REPORT INTO THE SOURCE OF FUNDING FOR THE ACA’S COST SHARING REDUCTION PROGRAM

In it, the report noted that between April 10, 2013 and July 11, 2013, in an unusual move” the Administration informally withdrew its request for an annual appropriation for the Affordable Care Act’s cost sharing reduction program by calling the Senate Committee on Appropriations.

In it’s Q1 2013 earning’s press release, Fannie Mae stated that the company’s dividend obligation to Treasury will by $59.4 billion by June 30, 2013, the EXACT TIME FRAME WHEN THE ADMINISTRATION CALLED THE SENATE COMMITTEE ON APPROPRIATIONS AND WITHDREW ITS REQUEST for $.

The money swept from the GSEs was and is not subject to the appropriations process. It is an end-run around Congressional purse strings. The Administration can spend the money swept from the GSEs in any way it chooses, like say, to fund elements of the Affordable Care Act that haven’t been allocated funds by Congress.

Maybe that’s why the Administration just formally invoked Presidential Privilege on GSE related documents? Regardless, I’m sure John Carney, Bob Corker, Mark Warner, Joe Light, Michael Bright, Mark Zandi, Dave Stephens, etc. are just fine with the notion that the Administration used GSE funds to illegally fund the Affordable Care Act.

Mean Gene