PORTLAND, Ore. -- While the Consumer Financial Protection Bureau mulls over national rule changes to short-term lending, Oregon families have already been hurt and could even go hungry trying to pay back loans.
Oregon offers a little extra protection. It is among the 18 states with some regulations on payday lending, including a 36 percent interest rate cap annually.
But families still fall into the lending "debt trap" and especially are at risk while spending during the holiday season. Oregon Attorney General Ellen Rosenblum said payday loans put people in difficult positions.
"If a debtor is faced with unaffordable payments on their payday-type loans, then they're having to choose between defaulting, between reborrowing, and between skipping their other financial obligations, like their rent or their basic living expenses like food and medical care,” Rosenbaum said.
The proposed CFPB rule changes to payday and car title lending include a requirement that lenders establish a consumer's ability to repay and limiting consumers to one loan at a time. Republican members of Congress have criticized the proposed change as a set of onerous regulations on the industry.
Jeff Kleen, a public policy advocate at Oregon Food Bank, said he spoke to a woman about how she got out from under her short-term lending debt.
"The way that she finally climbed out of that debt trap was to skimp on groceries,” Kleen said. "And this is a single mom with three daughters and all of them had to cut back on the amount of food that they were eating."
He said Oregonians spent $16 million dollars on fees for payday and car title loans last year, before interest payments on those loans even started.
Rosenblum encouraged Oregonians to think long and hard before taking out a short-term loan.
"Please make sure that you do have the ability to repay on the terms that you have committed to,” she cautioned, "because otherwise the collateral consequences - the closing of bank accounts, the seizure of cars and such - is going to unfortunately make for some very unhappy holidays."
New rules from the CFPB are expected to be announced in 2017.
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Antihunger advocates and relief organizations are gathering at New Mexico's State Capitol today as part of "Hunger Action Day."
Advocates will urge lawmakers to adopt a budget including $30 million over the next three years for New Mexico's five food banks.
Katy Anderson, vice president of strategy, partnerships and advocacy for Roadrunner Food Bank, said the money would help its 500 statewide partners close the meal gap.
"Many of our partners are in the basement of a church or in some kind of very small buildings and they might not have appropriate refrigeration or freezers or racks," Anderson explained. "So, some of that funding will help to support building up that infrastructure."
Every day, one in five New Mexico children face hunger or food insecurity. Anderson fears the number could rise if federal budget cuts to the Supplemental Nutrition Assistance Program come about. GOP lawmakers have proposed severe cuts to SNAP, Medicare, Medicaid and more.
For every one meal New Mexico's food banks are able to provide, SNAP provides nine, according to Anderson, who emphasized cuts to eligibility or benefits would be felt broadly.
"Roughly 22% to 23% of our entire population in New Mexico relies on SNAP benefits," Anderson reported. "The communities that are going to be the most hard hit are the rural communities."
New Mexico is one of eight states with a universal school meals policy, which provides free school meals to students regardless of income. As the Trump administration searches for budget cuts, Anderson worries government reimbursements for the program could also be slashed or eliminated.
"What is that going to mean from a federal perspective?" Anderson asked. "Because federal funds do come in to support that. If they shift that funding model, that could mean our state is left holding the bag to do this incredible program with a lot less federal funds."
In addition to Roadrunner, New Mexico's Food Depot, the Community Pantry in Gallup, Farmington's Echo and the Food Bank of Eastern New Mexico in Clovis provide supplemental food to the state's 33 counties. More information is online at rrfb.org/coalition.
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Food insecurity is rising in Indiana.
A Feeding Indiana's Hungry study found 76% of surveyed households expect to need food assistance as often or more in the next year. Nearly two-thirds of those who receive monthly assistance run out of benefits within two weeks.
Emily Weikert Bryant, executive director of Feeding Indiana's Hungry, said more than 70% of respondents had to choose between food and transportation, while over half had to choose between food and housing.
"The stark reality revealed by this study is really a wake-up call for all of us," Bryant emphasized. "It's unacceptable that so many Hoosiers are forced to make impossible choices between feeding your families and covering basic needs like transportation and housing."
Bryant noted many skipped meals. Some faced even tougher choices, like food or medical care.
The survey showed having a job is not always enough. Bryant pointed out more than half of surveyed households had at least one working adult. Many who were unemployed cited illness or disability. Others lost benefits because their income was just over the limit. Some missed paperwork deadlines and lost benefits.
"Even those who are accessing the federal nutrition programs, it's not enough and that's where the charitable sector continues to feel that gap," Bryant stressed. "In the climate that we're talking about right now, we need to make sure that the program is not being cut."
Feeding Indiana's Hungry is calling for action, saying food banks need donations, volunteers, and stronger policy support to keep up with demand. Bryant argued federal and state programs must do more to ensure families do not go hungry.
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The Texas Department of Agriculture is accepting sponsor applications for its 2025 Summer Meal Programs.
The Summer Food Service Program and the Seamless Summer Option, for schools that operate the National School Lunch Program, provide summer meals for students 18 years old and younger.
Agriculture Commissioner Sid Miller said more than 11,000 organizations have participated in the past.
"We reimburse people that provide those summer meals," he said. "Now we work with schools, we work with community organizations like Boys and Girls Clubs, libraries, community centers, faith-based organizations, churches."
First-time sponsors must apply by April 15. Previous sponsors have until May 1. Applications are available at SquareMeals.org.
Miller said the agriculture department hopes to reach children in rural areas, those with a large concentration of migrant workers, and places where more than 50% of children are eligible for free or reduced-price lunch.
"It's real easy for people who want to find these summer meal locations. Between June 1 and the end of August they can find a site," he said. "All you do is dial 211, they'll ask what your ZIP code is where you live, and they'll give you a site close to you. Or if you want to go on the web you can visit summerfood.org."
Although federal funds for some programs are being cut, he said, he's not concerned about the summer food program; adding that "feeding hungry children is not a frivolous expense."
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