Republican senator puts GM into FDA bill

Republican Nebraska senator Mike Johanns has, with the public support of several colleagues, introduced an amendment to an FDA bill to vote on Obama’s plan for General Motors. If successfully attached to the bill, it could delay GM’s bankruptcy process and possibly result in the auto giant’s liquidation, given opposition by Republican leaders and some Democrats to the plan. 

Though Obama has made it clear that all Federal investments in General Motors would be sold off within two years, Johanns has referred to the GM-saving move as “nationalization” because 60% of GM would be owned by the U.S. government. 

One analyst stated that he believed Johanns was actually targeting the FDA bill itself, and that his attempt to require Congressional approval for the GM plan served two purposes – causing the FDA bill to become a double edged sword for Obama, and providing more opportunities to paint Obama as a socialist illegally increasing government power. 

The precedent for TARP funds being exchanged for equity was established by Republican George W. Bush. Johanns did not object to similar moves by the Bush administration in the financial industry, which resulted in government-owned banks.

Johanns has, separately, opposed Obama’s attempt to reduce government subsidies for agribusinesses such as Monsanto, Cargill, and Archer Daniels Midland, ridiculing Obama’s wife’s preference for organic foods.

The FDA bill would provide the Food and Drug Administration with “certain authority to regulate tobacco products.” That would include setting forth criteria by which “tobacco products are deemed adulterated or misbranded.” and allowing the FDA Secretary “to require prior approval of all label statements” (presumably for companies guilty of misleading statements.)