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SF Chronicle reported false claim that $4.19 billion of recovery plan "would go to" ACORN

January 27, 2009 12:47 pm ET
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SUMMARY: A San Francisco Chronicle article reported the false claim that $4.19 billion of President Barack Obama's economic recovery plan "would go to the liberal housing activist group ACORN." In fact, the bill does not mention ACORN or otherwise single it out for funding.

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In a January 27 San Francisco Chronicle article, Washington correspondent Carolyn Lochhead reported the false claim -- which she attributed to the group Americans for Limited Government -- that $4.19 billion of President Barack Obama's economic recovery plan "would go to the liberal housing activist group ACORN [Association of Community Organizations for Reform Now]." In fact, the bill contains no language mentioning ACORN. The false claim is based on a misrepresentation of a provision that would appropriate $4,190,000,000 "for neighborhood stabilization activities related to emergency assistance for the redevelopment of abandoned and foreclosed homes as authorized under division B, title III of the Housing and Economic Recovery Act of 2008." The provision requires that money will be distributed through competitive processes. It states that, "not less than $3,440,000,000 shall be allocated by a competition" to "States, units of general local government, and nonprofit entities or consortia of nonprofit entities." It also provides that "up to $750,000,000 shall be awarded by competition to nonprofit entities or consortia of nonprofit entities to provide community stabilization assistance."

The $4.19 billion will be distributed by the Department of Housing and Urban Development's Neighborhood Stabilization Program.

The claim in Lochhead's article echoes material released by House Minority Leader John Boehner's (R-OH) office. A January 26 "fast facts" release claimed of the stimulus bill: "The legislation could open billions of taxpayer dollars to left-wing groups like the Association of Community Organizations for Reform Now (ACORN), which has been accused of voter fraud, is reportedly under federal investigation; and played a key role in the housing meltdown." A January 23 release to which the January 26 document links stated that "the Democrats' bill makes groups like ACORN eligible for a $4.19 billion pot of money for 'neighborhood stabilization activities.' "

The claim also echoes the false smear propagated by several media figures in 2008 that Democrats tried to create a "slush fund" for ACORN in the 2008 Emergency Economic Stabilization Act.

From the January 27 San Francisco Chronicle article:

Two Senate committees are set to take up the stimulus today. The House has scheduled a full vote Wednesday. A House Democratic leadership aide said he believes Republican leaders will make their points and then "let their members go and vote. I just can't see them voting no at a time like this. This is not like 1993."

A Virginia advocacy group called Americans for Limited Government is pressuring moderate Democrats to vote against the stimulus bill, listing $4.19 billion that it said would go to the liberal housing activist group ACORN, $200 million for beautification of the National Mall and other items.

Yet spokesman Carter Clew laughed at the idea that Republicans would kill the whole bill. "We're not quite that ambitious," he said. "The idea is just to limit it some."

Republicans object less to the stimulus itself than to its spending component; they have no objection to cutting taxes.

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    • Author by pete592 (January 27, 2009 12:56 pm ET)
         

      And here, ladies and gentlemen, is your Fox News "Liberal Outrage" for this evening's broadcast lline up.  Stay tuned for endless insight from the usual cast of characters, none of which have actually read the presidents economic recovery plan.

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    • Author by IRONY 101 (January 27, 2009 12:57 pm ET)
         

      Can't wait to hear Sean Hannity's version...

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    • Author by magnolialover (January 27, 2009 12:58 pm ET)
         

      ACORN, the new boogeyman for the GOP. Can't wait to hear them twisting and turning all over the place on this one, even though, you know, they're not even in the package.

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      • Author by onionhead (January 27, 2009 1:50 pm ET)
           

        Poor people and groups that fight on behalf of the poor have always been their boogeyman or boogeymen.

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    • Author by nerzog (January 27, 2009 1:14 pm ET)
         

      This will become a Republican talking point, if it hasn't already.  Expect to see it repeated by every GOP lawmaker when they are asked to explain why Obama's plan will ruin the country and cause the Earth to fall out of its orbit around the Sun.

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    • Author by WorldlyMrR (January 27, 2009 1:52 pm ET)
         

      Actually if I remember what i read over the weekend, the Dems modified the language in the bill to allow agencies, such as ACORN, to be eligible for some of the funds.  Seems the early draft language limited the funds to local and state governments, not NGOs.

      While attributing all 4 Bn to ACORN is indeed wrong the questions remains, why the last minute language change to allow NGOs?

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    • Author by wolf kotenberg (January 27, 2009 1:53 pm ET)
         

      wellthat is funny. I just heard last night ( on Countdown 0 the chief of Citibank bought himself a nice 50 million dollar french private jet.

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    • Author by shaggles (January 27, 2009 3:29 pm ET)
         

      I had a deja vu moment when the page opened up and I saw those ACORN headlines. 

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    • Author by tman418 (January 27, 2009 5:17 pm ET)
         

      what evidence is there that ACORN would even have access to this money?

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    • Author by wolf kotenberg (January 27, 2009 5:27 pm ET)
         

      Carolyn Lochhead  butt. they all want to be on Hannity so they make up stuff.

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      • Author by eweston8542983 (January 27, 2009 6:16 pm ET)
           

        Ware the Acorn!!

        Do these pants make me look like I have ACORNS?

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    • Author by mcoop221 (January 27, 2009 5:32 pm ET)
         

      I didn't hear ACORN say they weren't getting any money.

      It works both ways.

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    • Author by jonesbiko7500 (January 27, 2009 6:10 pm ET)
         

      It's the same old song and dance to make up lies to avoid saying why they really do not support the stimulus package. There are no tax cuts provided for the wealthy. Everything the right-wing does is designed to accomplish one of two things, either (a) transfer wealth from everyone else to the rich, or, (b) distract everyone else from the fact that (a), that wealth transfer, is occurring. That's why right-wing policies inevitably increase human misery, suffering, pain and death.  Both at home here, and abroad. And all the while, the right-wing will offer great-sounding reasons for doing what they're doing.

      "The modern conservative is engaged in one of man's oldest exercises in moral philosophy; that is, the search for a superior moral justification for selfishness." John Kenneth Galbraith

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