Could another stimulus check be right around the corner?

In Congress, there has been discussion of issuing yet another economic stimulus check in hopes of reviving the American economy. At the same time, the House is scheduled to take up a housing bill Wednesday, which would try and bail out troubled lenders Freddie Mac and Fannie Mae.

KSFY's Drew Sandholm caught up with U.S. Representative Stephanie Herseth Sandlin to talk about her thoughts on both of those ideas. Here's how it went:

KSFY: What are your thoughts on the housing bill to be taken up this week and how will that influence South Dakotans?

Herseth Sandlin: Well, we do know that the problems we're having in the housing market nationwide certainly have the potential to have a deeper impact here in South Dakota. We've been somewhat isolated from some of the high foreclosure rate problems we've seen in certain parts of the country, but we also know that we've (seen) a slow down in housing starts and permits to have those housing starts and so I think it's important when we look at Fannie Mae and Freddie Mac (and) the important role that they played in the secondary housing market, secondary mortgage market in particular, that we look at what the Federal Reserve can do, what the administration's proposing, but at the same time ensure that in Congress, we're including provisions that protect the taxpayers, but recognizing the deeper financial impact that this could have on the markets if we don't do something to help calm and stabilize the market.

KSFY: So are you in support of that housing bill?

Herseth Sandlin: I'm still taking a closer look at it. I want to make sure that taxpayers are protected. We need to make sure in terms of how we score this and pay as you go rules that the House has to abide by those rules that all of those things are being analyzed. I have a lot of confidence in what Treasury Secretary Paulson is putting forward, but at the same time, confidence in the leaders in Congress that I've been working with to make sure that we are fiscally responsible and that we are protecting the taxpayers if indeed we have to extend the line of credit through the Federal Reserve to these government sponsored entities.

KSFY: Okay. What about plans to cut another economic stimulus check to Americans?

Herseth Sandlin: Well, there are a lot of ideas floating around and I do hope that whatever we do, if we do indeed do a second stimulus package that it is again bi-partisan, that there is agreement on both sides of the aisle as to what provisions we should include to have a truly stimulative impact on the nation's economy. We're still gauging the effects of the first stimulus checks and the rebate checks that were mailed out to South Dakotans and to other taxpayers across the country in May. We know people are hurting, but at the same time it's also important that we look at all the other things that Congress is doing to try to stabilize the economy. Whether it's in the housing markets, whether it's trying to get out excessive speculation that's distorting the energy markets and the ag-commodities markets that we're looking at and have had a number of hearings in the agriculture committee on pursing legislation in the next few weeks to address speculation in the markets. A host of things that we're looking at for energy to bring gas prices down, but also a comprehensive energy package that will help us both in the short term and in the long term.

KSFY: The White House says it wants to see how the first economic stimulus package does before it approves another. Is that in line with your stance?

Herseth Sandlin: The White House opposed right now to a second stimulus package because they're still gauging the economic effects of the first stimulus bill. There has been no second bill introduced. There are a lot of ideas about what we should include if indeed we would indeed move forward with that either by the end of the summer or sometime this fall. Whether that's additional unemployment benefits, whether that's food stamps because we know that's very stimulative to the economy. Both of those are the most stimulative in many economists opinion. Whether we additional rebate checks, infrastructure because we know we have a number of projects that are ready and waiting and can be very stimulative to the economy. So we're talking to a lot of economists, doing a lot of analysis to make sure that whatever is included, if we indeed do move forward with a second stimulus package and that's in no ways guaranteed. In addition to other steps and other legislation that we're pursuing that again, it is something that we feel is going to help people in the short term and help stabilize the economy based on all the problems we've been seeing, but at the same time realize that what ever we do adds to the national debt and we've see the increased power and influence of the central banks in Europe and Asia and our Federal Reserve because of how many foreign creditors we owe money to and the impact of the wheat dollar.

KSFY: Alright, thanks for speaking with me.

Herseth Sandlin: Thank you, Drew.

Questions? Comments? Story ideas?
KSFY's Drew Sandholm can be reached by phone at (605) 373-7372 or by e-mail.