Fannie Mae-No Politics (FNMA)

[Robert from yahoo bd]

Congress granted the FHFA the power to enter into the Net Worth Swipe in the 2008 HERA to give the FHFA plenty of room to manage the great financial crisis including the ability to act "in the best interests of the FHFA or the public it serves."

Does that mean that it's okay for Unelected Bureaucrats like DeMarco to take all the economic rights of the shareholders? We'll find out shortly whether or not the USSCT will consider this question.

Meanwhile, do you think that this is an example of a federal agency (aka the Administrative State/4th Branch of Government) engaging in overreach?

From todays WSJ: "One peril of a large administrative state is the mischief agencies can get up to when no one is watching. Witness the overreach of the Agriculture Department, which expanded food-stamp benefits by evading the process for determining benefits and end-running Congressional review.

The behavior has earned USDA two scoldings this year from the Government Accountability Office. The latest report in December thwacked the department for "key decisions [that] did not fully meet standards for economic analysis" as well as "insufficient analysis of the effects of decisions" and "lack of documentation."

The sneak started in 2021 when USDA rejiggered the Thrifty Food Plan, a metric the government uses to determine foods that make up a healthy nutritional basket. Agriculture uses that information, as well as food prices and inflation, to set benefits for the Supplemental Nutrition Assistance Program (known as SNAP, or food stamps).

Congress controls the purse and reviews benefits for social safety-net programs including food stamps. Since the 1970s, SNAP benefits and the Thrifty Food Plan have been adjusted annually for inflation. But in 2020 USDA extended a special 15% emergency increase in response to the pandemic and shortages and price hikes for certain foods owing to shortages.

The pandemic increase was set to expire in September 2021, so the USDA hurried to push through its 2021 increase on an abbreviated time frame, increasing SNAP benefits by an average of 21%. The result skipped over procedural safeguards, evaded Congressional review and produced its increases without a project plan or program manager. According to a review by Angela Rachidi at the American Enterprise Institute, the Congressional Budget Office estimates the 2021 increase in the Thrifty Food Plan added $200 billion to the budget baseline over 10 years.

In its first review of USDA, the GAO skewered Agriculture's process for having violated the Congressional Review Act, noting that the "2021 [Thrifty Food Plan] meets the definition of a rule under the [Congressional Review Act] and no CRA exception applies. Therefore, the 2021 TFP is subject to the requirement that it be submitted to Congress." GAO's second report says "officials made this update without key project management and quality assurance practices in place."

Abuse of process doesn't get much clearer than that. The GAO review won't unwind the increase, which requires action by the USDA. But the GAO report should resonate with taxpayers who don't like to see the politicization of a process meant to provide nutrition to those in need, not act as a vehicle for partisan agency staffers to impose their agenda without Congressional approval.

All of this undermines transparency and accountability for a program that provided food stamps to some 41 million people in 2021."

https://www.gao.gov/products/gao-23-105450

https://www.aei.org/poverty-studies/president-bidens-usda-improperly-increased-snap-by-billions-according-to-the-gao/