Reid, Ensign sparring over housing bill

Congress’s effort to rescue beleaguered homeowners stalled Wednesday because of a dispute between the two Nevada senators — who, ironically, represent the state with the nation’s highest foreclosure rate.

The housing legislation appeared to be sailing through this week, giving Majority Leader Harry Reid (D-Nev.) hope that the chamber would have time to clear a rewrite of surveillance laws, an emergency war-spending bill and a critical Medicare physician-pay measure before the Independence Day recess.

{mosads}But Sen. John Ensign, Reid’s counterpart in Nevada and chief of the Senate GOP’s campaign arm, threw a wrench into those plans. He insisted the chamber take a vote on his renewable-energy amendment before he would allow final action on the housing bill.

Reid refused and said the amendment would complicate the housing-rescue package because the House had dropped a similar energy provision from its bill. Ensign dug in his heels and said he would press for a vote even if it meant stretching debate through the weekend. Reid responded by threatening to keep the Senate in session this weekend as well.

While the legislation is expected to pass, the two sides were stuck negotiating Wednesday and jeopardized the chances of clearing all the big items on the legislative agenda before senators return home to talk to voters.

The public fight is unusual for the Nevada senators, who had agreed to avoid trading barbs, according to many aides. Even during this battle, the two men have taken care to avoid directly reprimanding each other.

But the tension between the two politicians, who ran against one another for the Senate in 1998, was clear.

Reid on Tuesday evening questioned whether the objections were raised “to show the power of a senator.”

He added: “I acknowledge, one senator has a lot of power, but I think they should recognize they are holding up a lot of stuff.”

Ensign shot back Wednesday morning, telling reporters that he warned Reid that he was ready “to go to the wall on this one.” He later said that his warning was also made to Sens. Chris Dodd (D-Conn.) and Richard Shelby (R-Ala.), the bill’s sponsors.

“They’re not going to finish the bill before the end of the weekend unless they make a deal with us,” Ensign said of his amendment, co-sponsored by Sen. Maria Cantwell (D-Wash.). The Republican was one of just nine senators to vote Tuesday against curtailing debate on the housing bill.

Aides to both senators say the two have a positive relationship, despite this disagreement.

“Sen. Reid and Sen. Ensign disagree from time to time on national issues, but work extremely well together on most Nevada issues,” said Rodell Mollineau, a Reid spokesman. “Reasonable adults can respectfully disagree without it creating personal problems.”

But this fight held up a bill that would have a direct impact on Nevada and is at the center of this election-year’s debate over the economy. The bill would expand the Federal Housing Administration’s $300 billion insurance to aid struggling borrowers, provide nearly $15 billion in tax breaks and overhaul mortgage giants Freddie Mac and Fannie Mae.

May’s foreclosure rate in Nevada was the highest in the country for the 17th consecutive month. Just over 9,000 properties received a foreclosure filing in May, which amounts to one in every 118 households and marks a 24 percent jump from the previous month, according to market data compiled by realtytrac.com.

Reid’s lieutenant, Senate Majority Whip Dick Durbin (D-Ill.), emphasized that point Wednesday.

“It’s curious that Sen. Ensign is raising this issue, being from the state of Nevada, where the value of homes has gone down some 27 percent and there are record numbers of foreclosures,” Durbin said, with Reid sitting nearby during a news conference with reporters. “Sen. Ensign is stopping a housing bill to deal with a crisis that really is the worst in the nation in his state of Nevada. I don’t understand that.”

Reid did not take direct aim at Ensign, but sharply criticized the amendment for not having provisions to offset its costs, which the House has demanded and the business community has said it would accept.

“It would be a waste of our time if we passed this unpaid for and sent it back to the House,” Reid said.

Ensign rejects that argument.

“Our responsibility is to act as the Senate, as far as I’m concerned,” Ensign said.

The Ensign-Cantwell amendment would extend incentives for electricity produced from wind, biomass, hydropower and geothermal sources and give incentives to make homes and businesses more efficient. The Senate in April overwhelmingly agreed to attach the provision to a different housing bill.

While some GOP senators wanted Ensign to back off from his demands, others stood by him and blamed Reid for holding up the housing bill at a time of economic downturn.

Sen. Judd Gregg (R-N.H.) said that the energy package would help struggling businesses and homeowners.

“It is not something that should be delayed by the leadership on the other side of the aisle, but that’s what is happening,” Gregg said.