LTC 017-2009 Federal Stimulus Funds,~^. s-- ~ ,r [-
m MIAMI BEACH ~~~}vii; ;~ ~~~~I%2~
OFFICE OF THE CITY MANAGER
NO. LTC # oi~-2009 LETTER TO COMMISSION
TO: Mayor Matti Herrera Bower and Members of the City Commission
FROM: Jorge M. Gonzalez, City Manager
DATE: January 16, 2009
SUBJECT: FEDERAL STIMULUS FUNDS
The purpose of this LTC is to provide the Mayor and City Commission with information on
Federal economic stimulus funding. Although a final stimulus package may not be passed
until mid-February, the leadership of the U.S. House of Representatives has completed
preliminary work on the package, and it may be considered by key committees next week.
Yesterday, the House's Committee on Appropriations and the Committee on Ways and
Means released summaries of the American Recovery and Reinvestment bill of 2009.
A summary of this proposed stimulus legislation prepared by the City's federal lobbyists is
attached for your review. As evidenced by this summary, the bill will include many different
elements, which the Administration and the City's lobbyists will continue to analyze to identify
all available opportunities for City initiatives and projects.
The House Bifl includes the following provisions:
• A goal of using at least 50 percent of the funds for activities that can be initiated not
later than 120 days after the date of the enactment of the bill;
• Formula grants shall be awarded not later than 30 days after the date of enactment
of the Act;
• Competitive grants shall be awarded not later than 90 days after the date of
enactment of the Act;
• There is an additional period for new programs -the time limits maybe extended for
up to 30 days in the case of grants for which funding was not provided in fiscay year
2008;
• Each recipient of a grant shall enter into contracts or other binding commitments no
later than 1 year after the date of enactment of the Act to make use of 50 percent of
the funds awarded;
• No funds may be used for any casino, aquarium, zoo, golf course or swimming pool;
Infrastructure Funding
As expected, the infrastructure investment includes roads and bridges, water resources,
environmental infrastructure, health and health information technology, telecommunications,
and energy. One thing that is becoming increasingly clear is that it is extremely unlikely that
stimulus funds will flow directly from the federal government to the cities; rather, it appears
that funds are most likely to flow through the existing pipelines in which money flows from
the federal government to states and cities. There has been recent discussion among
members of Congress that, although the stimulus package will not include earmarks, it
should include formulas that direct the spending of the funds, to ensure that money that
flows through the states reaches local communities.
To this end, since early December, the Administration, in consultation with the City's federal
Letter To Commission
January 15, 2009
Federal Stimulus Funding
Page 2 of 3
lobbyists, has been reviewing what little information is available regarding stimulus funding,
to identify each potential funding pipeline, and match local infrastructure projects that would
qualify for one of these federal (or state) funding streams.
Although the Administration has not yet reviewed all programs contained in the bill, the
following has been identified:
• State and Tribal Assistance Grants (STAG) - $8.4 billion
o $6 billion shall be for capitalization grants for the clean Water State Revolving
Funds. Each State shall use 50 percent of the amount of the capitalization grant
received by the State to provide assistance, in the form of additional
subsidization, to municipalities for projects that are included on the State's
priority list, of which 80 percent shall be for projects to benefit municipalities that
meet affordability criteria as determined by the Governor of the State.
o $2 million shall be fore capitalization grants for the Drinking Water State
Revolving Funds. Each State shall use 50 percent of the amount of the
capitalization grant received by the State to provide assistance, in the form of
additional subsidization, to municipalities for projects that are included on the
State's priority list.
Potential Citv Projects
The City's 2008/09 Capital Budget includes projects for which four types of financing would
need to be secured: Future Water/Sewer Bonds, Future Stormwater Bonds, South Pointe
financing, and Parking Revenue Bonds. Unfortunately, due to current credit market
conditions, this represents over $100 million that cannot yet be secured for projects
approved in this year's Capital Budget.
A list of infrastructure projects that may be eligible for funding is attached to this LTC. This
list was developed following review of current financing needs for projects approved in the
2008/09 Capital Budget, and narrowed down to those projects with short-term development
timelines that will produce long-term benefits; have identifiable eligible funding streams via
existing federal and state programs; and have the potential for job creation.
The attachment includes estimates of the number of jobs supported by each project. These
estimates are based on an average of 20,000 jobs being supported by each $1 billion of
infrastructure spending. During the current debate regarding stimulus legislation, the range
of estimate has been between 25,000 and 45,000 jobs per billion dollars spent. These
figures are only provided based on requests from various outside organizations such as the
US Conference of Mayors; job figures are only estimates and are subject to a significant
margin of error.
To date, the Administration has discussed the City's needs with the City's Congressional
delegation, Members of the Florida Senate and House of Representatives, and staff from
the Governor's Office of Policy and Budget. The projects have been identified by type, as
well as the time frame in which they can be "shovel ready'.
The Administration has identified 13 capital projects in the Capital Budget that, if full
funding was available, would start construction within 90 days. Construction of these
projects would contribute $66 million into the economy.
The Administration has also identified 14 capital projects that, if full funding was
available, would start construction in between 90-180 days, providing an additional
$186 million to the local economy.
Letter To Commission
January 75, 2009
Federal Stimulus Funding
Page 3 of 3
The Administration has also identified $30 million of spending on additional projects
that could start before the end of 2009, and another $186 million that would be
°shovel in the ground" in 2010.
January 28, 2009 Citv Commission Meeting
On January 28, 2009, the Mayor and City Commission will consider resolutions approving
the City's state and federal legislative agendas for 2009/10. As a component of each
legislative package, the Administration will present specific stimulus priorities for
consideration and approval by the City Commission, including the list of projects for federal
and/or state stimulus consideration; include language that ensures funds flow down to local
programs; urge the State and Federal Governments to ensure that stimulus efforts include
significant support for Stormwater projects.
Additionally, the Federal Government should create a backstop for the Municipal Bond
Market, similar to that which was done for commercial paper. This is due to the inability to
access financing, which not only keeps the funds that would be financed from being spent in
the local economy, it also prevents the spending of funding that the City has on-hand for the
projects that are short of funding. In otherwords, a $101 million financing shortfall can have
a $210 million negative economic impact.
County and State Efforts
As stated previously, the Administration has been refining the project list and working with
our lobbyists and representatives since early December, in anticipation of federal stimulus
funding. The City also submitted this list of projects to the U.S. Conference of Mayors prior to
their January 9, 2009 deadline for inclusion in their final project list. Finally, Miami-Dade
County Commission Chairman Dennis Moss has requested that the County and its cities
work together to develop a comprehensive list of infrastructure projects, and Governor
Charlie Crist has tasked Dr. Dale Brill, Director of the Office of Tourism, Trade, and
Economic Development to develop a comprehensive list for the State. The Administration
will work with both the County and State on the development of these comprehensive lists,
while continuing all efforts to secure funding for Miami Beach projects.
Conc-
An initial review of the House legislation indicates the programs listed in Attachment B that
may represent potential opportunities for the City. The Administration and the City's lobbyists
will continue to analyze the proposed legislation to identify all available opportunities for City
initiatives and projects, and I will provide you with more information and updates as they
become available. In the meantime, if you have any questions or comments, please do not
hesitate to contact me.
JMG/HF/kc
Attachments:
Attachment A: List of Miami Beach Infrastructure Projects
Attachment B: Potential Stimulus Program and Funding Opportunities
Attachment C: Summary of House Stimulus Legislation (MWW Group)
c: Executive Staff
Management Team
F:lcmgr\$ALL\CROWDER\IntergovernmentallStimulus LTC.doc
Attachment A: City of Miami Beach - 2008/09 and 2009/10 Infrastructure Projects
Estimated
Pro ect T e
Existin Fundin P1 aline s
Pro ect Total Project
Cost
Fundin Need Jobs'
Su rted
Environmental EPA Non-Point Seawalls $ 1,023,268 $ 1,023,288 20
Right Of Way STAG/CWSRLF/WMD/CBIR South Pointe $ 52,716,566 $ 13,200,000 284
Right Of Way STAG/CWSRLF/WMD/CBIR City Center (Historic District) $ 18,502,024 $ 13,800,000 276
Right Of Way STAG/CWSRLFNVMD/CBIR Normandy Shores Neighborhood Improvements $ 16,487,260 $ 8,620,002 132
a
Right Of Way
STAG/CWSRLF/WMD/CBIR
City Center (Commercial District)
$
13,209,842
$
9,900
000
198
G Right Of Way STAG/CWSRLF/WMD/CBIR Venetian Neig -Venetian Islands $ 10,074,366 $ ,
8,743,020 175
$ Right Of Way STAG/CWSRLF/WMD/CBIR Oceanfront Neighborhood Improvements $ 8,918,547 $ 4,155,853 83
o Transportation FDOT/MPO ROW Improvement Project $ 2,787,810 $ 2,005,328 40
Transportation FDOT/MPO ROW Maintenance Project $ 1,955,000 $ 1,955,000
Transportation FDOT/MPO Street Pavement Restoration $ 400,000 $ 400,000 g
Water CWSRLF Sunset 8 Venetian Island Force Mains $ 2,869,124 $ 2,827,124 57
Water CWSRLF Collins Ave. Main: SP Drive-72nd Street $ 1,400,000 $ 1,400,000 28
Water CWSRLF Sanita Sewer Manhole CW Rehab $ 1,000,000 $ 200,000 4
$ 131,323,807 $ 66,229,595 1,285
Environmental EPA Non-Point Seawalls $ 3,776,980 $ 3,776,960 76
Parking EDA Sunset Harbor/Purdy Ave. Garage $ 23,000,000 $ 23,000,000 460
Right Of Way EDA/STAG/CWSRLFNVMD/CBIR Flamingo Neighborhood Bid Pack A $ 32,678,018 $ 28,481,738 570
Right Of Way STAG/CWSRLF/WMD/CBIR Bayshore Neighborhood Bid Pack A $ 30,571,466 $ 27,471,453 549
Right Of Way EDA/STAG/CWSRLFNVMD/CBIR Flamingo Neighborhood Bid Pack C $ 28,575,895 $ 25,002,138 500
~
o Right Of Way STAG/CWSRLFNVMD/CBIR La Gorce Nei hborhood Im rovements
9 P
$
11,623,593
$
10,591,512
212
c Right Of Way STAG/CWSRLFNVMD/CBIR Bayshore Neighborhood Bid Pack B $ 7,117,604 $ 6,608,750 132
Right Of Way STAG/CWSRLFNVMD/CBIR Bayshore Neighborhood Bid Pack C $ 6,492,418 $ 8
017
380 120
$ Transportation FDOT/MPO Collins Canal Enhancement Project $ 8,555,127 $ ,
,
8,237,889 165
Transportation FDOT/MPO Repairs to 4 Bridges $ 1,425,000 $ 1,425,000 29
Water CWSRLF South Pointe Pump Station $ 24,431,281 $ 22,800,228 456
Water CWSRLF North Shore Neighborhood Improvements $ 18,155,373 $ 16,142,940 323
Water CWSRLF Sewer Inflow & Inflitration Program Phase I $ 8,300,000 $ 1,100,000 22
Water CWSRLF Indian Creek Sanita 8 Water Main Im rovement $ 5,531,492 $ 5,501,727 110
$ 210,234,025 $ 1 86,157,715 3,723
Right Of Way
Right Of Way
Ri ht Of Wa STAG/CWSRLFNVMD/CBIR
STAG/CWSRLF/WMD/CBIR
STAG/CWSRLFNVMD/CBIR Nautilus Neighborhood Improvements
Biscayne Point Neighborhood Improvements
Normand Isle Nei hborhood Im rovements $
$
$
$ 39,861,900
18,549,968
14,493,003
70,904,871 $
$
$
$ 10,548,419
14,939,829
4,292,402
29,780,850 211
299
88
598
Environmental Army Corps 65th Street Reef Ball Project (ACoE) $ 2,000,000 $ 2,000,000 40
Environmental EPA Green Waste Facility $ 530,000 $ 530,000 11
Parking EDA Lincoln Park Garage
$
30,000,000
$
30.000.000
800
Parking EDA New World Symptwny Parking Garage $ 22,210,185 $ 22,210,185 444
Parking EDA Cultural Campus Parking Garage $ 14,870,979 $ 14,870,979 293
Parks CDBG/FRDAP New World Symphony Park Project $ 22,300,000 $ 22,300,000 448
Parks CDBG/FRDAP Flamingo Park $ 3,892,979 $ 3,892,979 78
Parks WMD Par 3 Golf Course $ 3,818,887 $ 3,818,887 78
Public Facility CDBG/CDT Miami Beach Convention Center Improvements $ 18,400,635 $ 18,400,835 328
Public Facility CDBG Little Stage Complex $ 7,300,192 $ 7,300,192 148
Public Facility CDBG Property Management Facility $ 2,825,445 $ 2,825,445 53
Right Of Way STAG/CWSRLFNVMD/CBIR West Avenue/Bay Road Improvements $ 4,362,324 $ 2,480,837 50
Right Of Way STAG/CWSRLFNVMD/CBIR Sunset Islands 1 & 2 $ 4,215,906 $ 4,215,908 84
Right Of Way STAG/CWSRLFNVMD/CBIR Bayshore Neighborhood Bid Pack D $ 3,808,084 $ 2,874,381 57
Right Of Way STAG/CWSRLF/WMD/CBIR Star Island Enhancements $ 1,583,098 $ 1,498,288 30
Right Of Way STAG/CWSRLFNVMD/CBIR Palm & Hibiscus Island Enhancement $ 1
404
583 $ 787
878 18
Transportation FDOT/MPO Middle Beach Recreational Corridor $ ,
,
28,051,585 $ ,
26,051,585 521
Transportation FDOT/MPO Indian Creek Greenway $ 15,000,000 $ 15,000,000 300
Transportation FDOT/MPO Beachwalk II $ 4,738,731 $ 4,736,731 95
Transportation FDOT/MPO Lummus Park Serpentine Walkway $ 1,799,278 $ 1,799,278 38
Transportation FDOT/MPO Sunset Drive Bridges $ 843 400 $ 843 400 13
Transportation FDOT/MPO Indian Creek Pedestrian Bridges $ 534 952 $ 534 952 11
$ 1 89,888,983 $ 186,370,098 3,727
Attachment B:
Potential Stimulus Program and Funding Opportunities
• Local Government Energy Efficiency Block Grants: $6.9 billion to help state and local
governments make investments that make them more energy efficient and reduce
carbon emissions.
• Enerpy Efficiency Housing Retrofits: $2.5 billion for a new program to upgrade HUD
sponsored low-income housing to increase energy efficiency, including new insulation,
windows, and furnaces. Funds will be competitively awarded.
• Energy Efficiency Grants and Loans for Institutions: $1.5 billion for energy sustainability
and efficiency grants and loans to help school districts, institutes of higher education,
local governments, and municipal utilities implement projects that will make them more
energy efficient.
• Alternative Buses and Trucks: $400 million to help state and local governments
purchase efficient alternative fuel vehicles to reduce fuel costs and carbon emissions.
• Wireless and Broadband Grants: $6 billion for broadband and wireless services in
underserved areas to strengthen the economy and provide business and job
opportunities in every section of America with benefits to e-commerce, education, and
healthcare. For every dollar invested in broadband the economy sees aten-fold return
on that investment.
• Economic Develoament Assistance: $250 million to address long-term economic
distress in urban industrial cores and rural areas distributed based on need and ability to
create jobs and attract private investment. EDA leverages $10 in private investments for
$1 in federal funds.
• Highway Infrastructure: $30 billion for highway and bridge construction projects. It is
estimated that states have over 5,100 projects totaling over $64 billion that could be
awarded within 180 days. These projects create jobs in the short term while saving
commuters time and money in the long term. In 2006, the Department of Transportation
estimated $8.5 billion was needed to maintain current systems and $61.4 billion was
needed to improve highways and bridges.
• Clean Water State Revolving Fund: $6 billion for loans to help communities upgrade
wastewater treatment systems. EPA estimates a $388 billion funding gap. The
Association of State and Interstate Water Pollution Control Administrators found that 26
states have $10 billion in approved water projects.
Drinkina Water State Revolving Fund: $2 billion for loans for drinking water
infrastructure. EPA estimates there is a $274 billion funding gap. The National
Governors Association reported that there are $6 billion in ready-to-go projects, which
could quickly be obligated.
Corps of Engineers: $4.5 billion for environmental restoration, flood protection,
hydropower, and navigation infrastructure critical to the economy. The Corps has a
construction backlog of $61 billion.
Attachment B:
Potential Stimulus Program and Funding Opportunities
• Watershed Infrastructure: $400 million for the Natural Resources Conservation Service
watershed improvement programs to design and build flood protection and water quality
projects, repair aging dams, and purchase and restore conservation easements in river
flood zones.
• Communitv Service Employment for Older Americans: $120 million to provide
subsidized community service jobs to an additional 24,000 low-income older Americans.
• HOME Investment Partnerships: $1.5 billion to help local communities build and
rehabilitate low-income housing using green technologies. Thousands of ready-to-go
housing projects have been stalled by the credit crunch. Funds are distributed by
formula.
• Neighborhood Stabilization: $4.2 billion to help communities purchase and rehabilitate
foreclosed, vacant properties in order to create more affordable housing and reduce
neighborhood blight.
• Homeless Assistance Grants: $1.5 billion for the Emergency Shelter Grant program to
provide short term rental assistance, housing relocation, and stabilization services for
families during the economic crisis. Funds are distributed by formula.
• Communitv Services Block Grant• $1 billion for grants to local communities to support
employment, food, housing, and healthcare efforts serving those hardest hit by the
recession. Community action agencies have seen dramatic increases in requests for
their assistance due to rising unemployment, housing foreclosures, and high food and
fuel prices.
• Communitv Development Block Grants $1 billion for community and economic
development projects including housing and services for those hit hard by tough
economic times.
• Emergency Food and Shelter $200 million to help local community organizations
provide food, shelter, and support services to the nation's hungry, homeless, and people
in economic crisis including one-month utility payments to prevent service cut-off and
one-month rent or mortgage assistance to prevent evictions or help people leave
shelters. Funds are distributed by formula based on unemployment and poverty rates.
• Temgorarv Assistance for Needv Families $2.5 billion for block grants to help States
deal with the surge in families needing help during the recession and to prevent them
from cutting work programs and services for abused and neglected children.
• State and Local Law Enforcement $4 billion to support state and local law enforcement
including $3 billion for the Byrne Justice Assistance formula grants to support local law
enforcement efforts with equipment and operating costs, and $1 billion for the COPS
hiring grant program, to hire about 13,000 new police officers for three years. The
grantee is responsible for at least 25% in matching funds and must commit to use their
own funds to keep the officer on board in the fourth year.
~.
'~~'MVVWGROUP
January 15, 2008
MEMORANDUM
FROM: Marilyn Berry Thompson
F. Marion Turner
ATTACHMENT C
SUBJECT: House Appropriations & Ways and Means Committees Release Summaries of the Economic
Recovery Package (Stimulus Legislation
Earlier today, the House Committees on Appropriations and Ways and Means released summaries of
what's to be called the Economic Recovery Act of 2009, which has also been referred to as the next round
of Economic Stimulus legislation that began with last spring's tax refund bill.
The following pages include the House Appropriations summary of the overall package, along with a
shorter summary of the tax provisions.
Our understanding is that the bill is presently being printed at the Government Printing Office and will be
circulated to Members later today. A markup in the House Appropriations Committee is expected as early
as next Wednesday, with additional markups by Ways and Means (and possibly other committees) to
follow. It remains unclear at present exactly how the Senate will proceed. One option is to wait for the
House to send over its version of the bill and either accept or amend it. The other option would be to
create an entirely separate Senate package.
Regardless, the following structure will serve as the foundation going forward and seems to represent the
agreement reached between Congress and the incoming Obama Administration on a structure. We will
now begin the most critical stage in the process; navigating the actual legislative package through the
House and Senate Committee and floor processes. The hope is that this process will take no more than a
month, and the package can be signed by the President no later than the Presidents' Day recess.
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''MVVWGROUP
The following is the press release and summary of provisions, which was released by the House
Appropriations Committee earlier today.
SUMMARY: AMERICAN RECOVERY AND REINVESTMENT
The economy is in a crisis not seen since the Great Depression.
Credit is frozen, consumer purchasing power is in decline, in the last four months the country has lost 2
million jobs and we are expected to lose another 3 to 5 million in the next year.
Conservative economist Mark Zandi was blunt: "the economy is shutting down."
In the next two weeks, the Congress will be considering the American Recovery and Reinvestment Bill of
2009. This package is the first crucial step in a concerted effort to create and save 3 to 4 million jobs,
jumpstart our economy, and begin the process of transforming it for the 21st century with $275 billion in
economic recovery tax cuts and $550 billion in thoughtful and carefully targeted priority investments with
unprecedented accountability measures built in.
The package contains targeted efforts in:
* Clean, Efficient, American Energy
* Transforming our Economy with Science and Technology
* Modernizing Roads, Bridges, Transit and Waterways
* Education for the 21st Century
* Tax Cuts to Make Work Pay and Create Jobs
* Lowering Healthcare Costs
* Helping Workers Hurt by the Economy
* Saving Public Sector Jobs and Protect Vital Services
The economy is in such trouble that, even with passage of this package, unemployment rates are expected
to rise to between eight and nine percent this year. Without this package, we are warned that
unemployment could explode to near twelve percent. With passage of this package, we will face a large
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'•'MVVWGROUP
deficit for years to come. Without it, those deficits will be devastating and we face the risk of economic
chaos. Tough choices have been made in this legislation and fiscal discipline will demand more tough
choices in years to come.
Since 2001, as worker productivity went up, 96% of the income growth in this country went to the
wealthiest 10% of society. While they were benefitting from record high worker productivity, the
remaining 90% of Americans were struggling to sustain their standard of living. They sustained it by
borrowing... and borrowing... and borrowing, and when they couldn't borrow anymore, the bottom fell out.
This plan will strengthen the middle class, not just Wall Street CEOs and special interests in Washington.
Our short term task is to try to prevent the loss of millions of jobs and get our economy moving. The long
term task is to make the needed investments that restore the ability of average middle income families to
increase their income and build a decent future for their children.
EXECUTIVE SUMMARY
Unprecedented Accountability: A historic level of transparency, oversight and accountability will help
guarantee taxpayer dollars are spent wisely and Americans can see results for their investment.
• In many instances funds are distributed through existing formulas to programs with proven track
records and accountability measures already in place.
• How funds are spent, all announcements of contract and grant competitions and awards, and
formula grant allocations must be posted on a special website created by the President. Program
managers will also be listed so the public knows who to hold accountable.
• Public notification of funding must include a description of the investment funded, the purpose, the
total cost and why the activity should be funded with recovery dollars. Governors, mayors or others
making funding decisions must personally certify that the investment has been fully vetted and is an
appropriate use of taxpayer dollars. This will also be placed on the recovery website.
• A Recovery Act Accountability and Transparency Board will be created to review management of
recovery dollars and provide early warning of problems. The seven member board includes
Inspectors General and Deputy Cabinet secretaries.
• The Government Accountability Office and the Inspectors General are provided additional funding
and access for special review of recovery funding.
• Federal and state whistleblowers who report fraud and abuse are protected.
• There are no earmarks in this package.
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'•'MVVWGROUP
This plan targets investments to key areas that will create and preserve good jobs at the same time as it is
strengthening the ability of this economy to become more efficient and produce more opportunities for
employment.
Clean. Efficient American Enerey To put people back to work today and reduce our dependence on foreign
oil tomorrow, we will strengthen efforts directed at doubling renewable energy production and renovate
public buildings to make them more energy efficient.
• $32 billion to transform the nation's energy transmission, distribution, and production systems by
allowing for a smarter and better grid and focusing investment in renewable technology.
• $16 billion to repair public housing and make key energy efficiency retrofits.
• $6 billion to weatherize modest-income homes.
Transform our Economy with Science and Technology: We need to put scientists to work looking for the
next great discovery, creating jobs in cutting-edge-technologies, and making smart investments that will
help businesses in every community succeed in a global economy. For every dollar invested in broadband
the economy sees aten-fold return on that investment.
• $10 billion for science facilities, research, and instrumentation.
• $6 billion to expand broadband Internet access so businesses in rural and other underserved areas
can link up to the global economy.
Modernize Roads Bridges Transit and Waterwa,~ To build a 21st century economy, we must engage
contractors across the nation to create jobs rebuilding our crumbling roads, and bridges, modernize public
buildings, and put people to work cleaning our air, water and land.
• $30 billion for highway construction;
• $31 billion to modernize federal and other public infrastructure with investments that lead to long
term energy cost savings;
• $19 billion for clean water, flood control, and environmental restoration investments;
• $10 billion for transit and rail to reduce traffic congestion and gas consumption.
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. ar~
' ~~~' MVVW G RO U P
Education for the 21st Centurk To enable more children to learn in 21st century classrooms, labs, and
libraries to help our kids compete with any worker in the world, this package provides:
• $41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School
Modernization and Repair Program ($14 billion), and the Education Technology program ($1
billion).
$79 billion instate fiscal relief to prevent cutbacks to key services, including $39 billion to local
school districts and public colleges and universities distributed through existing state and federal
formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures,
and $25 billion to states for other high priority needs such as public safety and other critical
services, which may include education.
• $15.6 billion to increase the Pell grant by $500.
• $6 billion for higher education modernization.
Tax Cuts to Make Work Pay and Create j,obs• We will provide direct tax relief to 95 percent of American
workers, and spur investment and job growth for American Businesses. [marked up by the Ways and
Means Committee /SUMMARY ATTACHED AT THE END OF THIS DOCUMENT]
Lower Healthcare ost • To save not only jobs, but money and lives, we will update and computerize our
healthcare system to cut red tape, prevent medical mistakes, and help reduce healthcare costs by billions of
dollars each year.
• $20 billion for health information technology to prevent medical mistakes, provide better care to
patients and introduce cost-saving efficiencies.
$4.1 billion to provide for preventative care and to evaluate the most effective healthcare
treatments.
Heln Workers Hurt by the Economy High unemployment and rising costs have outpaced Americans'
paychecks. We will help workers train and find jobs, and help struggling families make ends meet.
• $43 billion for increased unemployment benefits and job training.
• $39 billion to support those who lose their jobs by helping them to pay the cost of keeping their
employer provided healthcare under COBRA and providing short-term options to be covered by
Medicaid.
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'.' MWWGROUP
• $20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.
Save Public Sector Jobs and Protect Vital Services We will provide relief to states, so they can continue to
employ teachers, firefighters and police officers and provide vital services without having to unnecessarily
raise middle class taxes.
• $87 billion for a temporary increase in the Medicaid matching rate.
• $4 billion for state and local law enforcement funding.
DETAILED SUMMARY
CREATE JOBS WITH CLEAN, EFFICIENT, AMERICAN ENERGY
To put people back to work today and reduce our dependence on foreign oil tomorrow, we will make
investments aimed at doubling renewable energy production and renovate public buildings to make them
more energy efficient. America's energy shortcomings present a huge opportunity to put people to work in
ways that will transform our economy.
• Reliable, Efficient Electricity Grid: $11 billion for research and development, pilot projects, and
federal matching funds for the Smart Grid Investment Program to modernize the electricity grid
making it more efficient, secure, and reliable and build new power lines to transmit clean,
renewable energy from sources throughout the nation.
• Renewable Energy Loan Guarantees: $8 billion for loans for renewable energy power generation
and transmission projects.
• GSA Federal Buildings: $6.7 billion for renovations and repairs to federal buildings including at least
$6 billion focused on increasing energy efficiency and conservation. Projects are selected based on
GSA's ready-to-go priority list.
• Local Government Energy Efficiency Block Grants: $6.9 billion to help state and local governments
make investments that make them more energy efficient and reduce carbon emissions.
• Energy Efficiency Housing Retrofits: $2.5 billion for a new program to upgrade HUD sponsored low-
income housing to increase energy efficiency, including new insulation, windows, and furnaces.
Funds will be competitively awarded.
• Energy Efficiency and Renewable Energy Research: $2 billion for energy efficiency and renewable
energy research, development, demonstration, and deployment activities to foster energy
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independence, reduce carbon emissions, and cut utility bills. Funds are awarded on a competitive
basis to universities, companies, and national laboratories.
• Advanced Battery Loans and Grants: $2 billion for the Advanced Battery Loan Guarantee and Grants
Program, to support U.S. manufacturers of advanced vehicle batteries and battery systems. America
should lead the world in transforming the way automobiles are powered.
• Energy Efficiency Grants and Loans for Institutions: $1.5 billion for energy sustainability and
efficiency grants and loans to help school districts, institutes of higher education, local governments,
and municipal utilities implement projects that will make them more energy efficient.
• Home Weatherization: $6.2 billion to help low-income families reduce their energy costs by
weatherizing their homes and make our country more energy efficient.
• Smart Appliances: $300 million to provide consumers with rebates for buying energy efficient
Energy Star products to replace old appliances, which will lower energy bills.
• GSA Federal Fleet: $600 million to replace older vehicles owned by the federal government with
alternative fuel automobiles that will save on fuel costs and reduce carbon emissions.
• Electric Transportation: $200 million for a new grant program to encourage electric vehicle
technologies.
• Cleaning Fossil Energy: $2.4 billion for carbon capture and sequestration technology demonstration
projects. This funding will provide valuable information necessary to reduce the amount of carbon
dioxide emitted into the atmosphere from industrial facilities and fossil fuel power plants.
• Department of Defense Research: $350 million for research into using renewable energy to power
weapons systems and military bases.
• Alternative Buses and Trucks: $400 million to help state and local governments purchase efficient
alternative fuel vehicles to reduce fuel costs and carbon emissions.
• Industrial Energy Efficiency: $500 million for energy efficient manufacturing demonstration
projects.
Diesel Emi ions Re uction• $300 million for grants and loans to state and local governments for projects
that reduce diesel emissions, benefiting public health and reducing global warming. This includes
technologies to retrofit emission exhaust systems on school buses, replace engines and vehicles, and
establish anti-idling programs. 70% of the funds go to competitive grants and 30% funds grants to states
with approved programs. Last year EPA was able to fund only 27% of the
applications received.
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TRANSFORMING OUR ECONOMY WITH SCIENCE AND TECHNOLOGY
We need to put scientists to work looking for the next great discovery, creating jobs in cutting-edge
technologies and making smart investments that will help businesses in every community succeed in a
global economy.
Broadband to Give Every Community Access to the Global EconomX
• Wireless and Broadband Grants: $6 billion for broadband and wireless services in underserved
areas to strengthen the economy and provide business and job opportunities in every section of
America with benefits to e-commerce, education, and healthcare. For every dollar invested in
broadband the economy sees aten-fold return on that investment.
Scientific Research
National Science Foundation: $3 billion, including $2 billion for expanding employment
opportunities in fundamental science and engineering to meet environmental challenges and to
improve global economic competitiveness, $400 million to build major research facilities that
perform cutting edge science, $300 million for major research equipment shared by institutions of
higher education and other scientists, $200 million to repair and modernize science and engineering
research facilities at the nation's institutions of higher education and other science labs, and $100
million is also included to improve instruction in science, math and engineering.
• National Institutes of Health Biomedical Research: $2 billion, including $1.5 billion for expanding
good jobs in biomedical research to study diseases such as Alzheimer's, Parkinson's, cancer, and
heart disease -NIH is currently able to fund less than 20% of approved applications -and $500
million to implement the repair and improvement strategic plan developed by the NIH for its
campuses.
• University Research Facilities: $1.5 billion for NIH to renovate university research facilities and help
them compete for biomedical research grants. The National Science Foundation estimates a
maintenance backlog of $3.9 billion in biological science research space. Funds are awarded
competitively.
• Centers for Disease Control and Prevention: $462 million to enable CDC to complete its Buildings
and Facilities Master Plan, as well as renovations and construction needs of the National Institute
for Occupational Safety and Health.
• Department of Energy: $1.9 billion for basic research into the physical sciences including high-
energyphysics, nuclear physics, and fusion energy sciences and improvements to DOE laboratories
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and scientific facilities. $400 million is for the Advanced Research Project Agency - Energy to
support high-risk, high-payoff research into energy sources and energy efficiency.
• NASA: $600 million, including $400 million to put more scientists to work doing climate change
research, including Earth science research recommended by the National Academies, satellite
sensors that measure solar radiation critical to understanding climate change, and a thermal
infrared sensor to the Landsat Continuing Mapper necessary for water management, particularly in
the western states; $150 million for research, development, and demonstration to improve aviation
safety and Next Generation air traffic control (NextGen); and $50 million to repair NASA centers
damaged by hurricanes and floods last year.
• Biomedical Advanced Research and Development, Pandemic Flu, and Cyber Security: $900 million
to prepare for a pandemic influenza, support advanced development of medical countermeasures
for chemical, biological, radiological, and nuclear threats, and for Cyber security protections at HHS.
• National Oceanic and Atmospheric Administration Satellites and Sensors: $600 million for satellite
development and acquisitions, including climate sensors and climate modeling.
• National Institute of Standards and Technology: $300 million for competitive construction grants
for research science buildings at colleges, universities, and other research organizations and $100
million to coordinate research efforts of laboratories and national research facilities by setting
interoperabilitystandards for manufacturing.
• Agricultural Research Service: $209 million for agricultural research facilities across the country.
ARS has a list of deferred maintenance work at facilities of roughly $315 million.
• U.S. Geological Survey: $200 million to repair and modernize U.S.G.S. science facilities and
equipment, including improvements to laboratories, earthquake monitoring systems, and
computing capacity.
Creating Small Business Opportuni~
• Small Business Credit: $430 million for new direct lending and loan guarantee authorities to make
loans more attractive to lenders and free up capital. The number of loans guaranteed under the
SBA's 7(a) business loan program was down 57% in the first quarter of this year compared to last.
• Rural Business-Cooperative Service: $100 million for rural business grants and loans to guarantee
$2 billion in loans for rural businesses at a time of unprecedented demand due to the credit crunch.
• Private sector lenders are increasingly turning to this program to help businesses get access to
capital.
• Industrial Technology Services: $100 million, including $70 million for the Technology Innovation
Program to accelerate research in potentially revolutionary technologies with high job growth
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potential, and $30 million for the Manufacturing Extension Partnerships to help small and mid-size
manufacturers compete globally by providing them with access to technology.
• Economic Development Assistance: $250 million to address long-term economic distress in urban
industrial cores and rural areas distributed based on need and ability to create jobs and attract
private investment. EDA leverages $10 in private investments for $1 in federal funds.
DTV Conversion Coupons• $650 million to continue the coupon program to enable American households to
convert from analog television transmission to digital transmission.
MODERNIZE ROADS, BRIDGES, TRANSIT AND WATERWAYS
To build a 21st century economy, we must engage contractors across the nation to create jobs -rebuilding
our crumbling roads and bridges, modernizing public buildings, and putting people to work cleaning our
air, water, and land.
Highway Infrastructure $30 billion for highway and bridge construction projects. It is estimated that
states have over 5,100 projects totaling over $64 billion that could be awarded within 180 days. These
projects create jobs in the short term while saving commuters time and money in the long term. In 2006,
the Department of Transportation estimated $8.5 billion was needed to maintain current systems and
$61.4 billion was needed to improve highways and bridges.
Transit: Public transportation saves Americans time and money, saving as much as 4.2 billion gallons of
gasoline and reducing carbon emissions by 37 million metric tons each year.
• New Construction: $1 billion for Capital Investment Grants for new commuter rail or other light rail
systems to increase public use of mass transit and to speed projects already in construction. The
Federal Transit Administration has $2.4 billion in pre-approved projects.
• Upgrades and Repair: $2 billion to modernize existing transit systems, including renovations to
stations, security systems, computers, equipment, structures, signals, and communications. Funds
will be distributed through the existing formula. The repair backlog is nearly $50 billion.
• Transit Capital Assistance: $6 billion to purchase buses and equipment needed to increase public
transportation and improve intermodal and transit facilities. The Department of Transportation
estimates a $3.2 billion maintenance backlog and $9.2 billion in needed improvements. The
American Public Transportation Association identified 787 ready-to-go transit projects totaling
$15.5 billion. Funds will be distributed through the existing formulas.
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Amtrak and Intercity Passenger Rail Construction Grants• $1.1 billion to improve the speed and capacity of
intercity passenger rail service. The Department of Transportation's Inspector General estimates the
North East Corridor alone has a backlog of over $10 billion.
Airport Improvement Grants: $3 billion for airport improvement projects that will improve safety and
reduce congestion. An estimated $41 billion ineligible airport infrastructure projects are needed between
2007-2011.
Transportation Security Administration Explosive Detection Systems• $500 million to install Aviation
Explosive Detection Systems in the nation's airports, improving security, and making life easier on
travelers by speeding security lines. Funds are competitively awarded based on security risk.
Coast Guard Bridges: $150 million for ready-to-go investments to repair or remove bridges deemed
hazardous to marine navigation, thereby removing obstructions and improving the safety of marine
navigation.
Technology Improvements for a More Efficient and ecure Government
• Social Security Administration Modernization: $400 million to replace the 30 year old Social
Security Administration's National Computer Center to meet growing needs for processing
retirement and disability claims and records storage.
• Farm Service Agency: $245 million for critical IT improvements to systems that have been unable to
handle workload increases.
• State Department Technology: $276 million to upgrade and modernize information technology
platforms for the Department to meet security requirements post-9/11.
• Department of Agriculture: $44 million for repairs and security improvements at USDA's
headquarters.
Department of Defense Facilities
• Medical Facilities: $3.75 billion for new construction of hospitals and ambulatory surgical centers,
and $455 million in renovations to provide state-of--the-art medical care to service members and
their families.
• Facilities Renovations: $2.1 billion to address needed repairs to military facilities.
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• Troop Housing: $1.2 billion for new construction and $154 million for renovations to improve
housing for our troops.
• Child Development Center: $360 million for new child development centers.
• Guard and Reserve: $400 million for new construction to support Guard and Reserve units across
the country with operations and training facilities and utilities infrastructure.
Veterans Administration Facilities
• Veterans Medical Facilities: $950 million for veterans' medical facilities. The Department has
identified a $5 billion backlog in needed repairs, including energy efficiency projects, at its 153
medical facilities.
Veterans Cemeteries: $50 million to put people to work making monument and memorial repairs at
cemeteries for American heroes.
Border Ports of Entrv: $1.15 billion to construct GSA and Customs and Border Patrol land ports of entry to
improve border security, make trade and travel easier and reduce wait times, and to procure non-intrusive
inspection technology at sea ports of entry, which is used to scan cargo containers to reduce the risk that
containers can be used to smuggle weapons of mass destruction.
Job Corps Facilities: $300 million to upgrade job training facilities serving at-risk youth while improving
energy efficiency.
Construction on Public Lands and Parks: $3.1 billion for infrastructure projects on federal lands including
improvements to visitor facilities, road and trail restoration, preservation of buildings of cultural and
historic importance, rehabilitation of abandoned mines and oil fields, and environmental cleanup projects.
This includes $1.8 billion for the National Park Service, $325 million for the Bureau of Land Management,
$300 million for the National Wildlife Refuges and National Fish Hatcheries, and $650 million for the Forest
Service.
National Treasures: $400 million, including $200 million to address the deterioration of the National Mall,
such as repair of the Jefferson Memorial's collapsing Tidal Basin walls; $150 million to address the repair
backlog at the Smithsonian; and $50 million for the National Endowment for the Arts.
Clean Water
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• Clean Water State Revolving Fund: $6 billion for loans to help communities upgrade wastewater
treatment systems. EPA estimates a $388 billion funding gap. The Association of State and
Interstate Water Pollution Control Administrators found that 26 states have $10 billion in approved
water projects.
Drinking Water State Revolving Fund: $2 billion for loans for drinking water infrastructure. EPA
estimates there is a $274 billion funding gap. The National Governors Association reported that
there are $6 billion in ready-to-go projects, which could quickly be obligated.
Rural Water and Waste Disposal: $1.5 billion to support $3.8 billion in grants and loans to help
communities fund drinking water and wastewater treatment systems. In 2008, there were $2.4
billion in requests for water and waste loans and $990 million for water and waste grants went
unfunded.
Water Resources
• Corps of Engineers: $4.5 billion for environmental restoration, flood protection, hydropower, and
navigation infrastructure critical to the economy. The Corps has a construction backlog of $61
billion.
• Bureau of Reclamation: $500 million to provide clean, reliable drinking water to rural areas and to
ensure adequate water supply to western localities impacted by drought. The Bureau has backlogs
of more than $1 billion in rural water projects and water reuse and recycling projects.
• Watershed Infrastructure: $400 million for the Natural Resources Conservation Service watershed
improvement programs to design and build flood protection and water quality projects, repair aging
dams, and purchase and restore conservation easements in river flood zones.
• International Boundary and Water Commission: $224 million to repair flood control systems along
the international segment of the Rio Grande damaged by hurricane Katrina and other serious
storms.
Environmental Cleanup
• Superfund Hazardous Waste Cleanup: $800 million to clean up hazardous and toxic waste sites that
threaten health and the environment. EPA has 1,255 sites on its National Priority List, selected
based on a hazard ranking system. There are many Superfund sites ready for construction, but not
funded due to budget shortfalls and over 600 sites with ongoing construction that could be
accelerated.
• Leaking Underground Storage Tanks: $200 million for enforcement and cleanup of petroleum leaks
from underground storage tanks at approximately 1,600 additional sites. There are an estimated
116,000 sites with the potential to contaminate important water supplies.
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• Nuclear Waste Cleanup: $500 million for nuclear waste cleanup at sites contaminated as a result of
the nation's past nuclear activities. Accelerating the completion of projects will reduce long-term
costs.
• Closed Military Bases: $300 million for cleanup activities at closed military installations allowing
local communities to redevelop these properties for productive use. The Department estimates that
there is a $3.5 billion environmental cleanup backlog at bases closed during previous BRAC rounds.
• NOAA Habitat Restoration: $400 million for ready-to-go habitat restoration projects.
• Brownfields: $100 million for competitive grants for evaluation and cleanup of former industrial
and commercial sites -turning them from problem properties to productive community use. Last
year EPA was only able to fund 37% of Brownfields applications.
Reducing Wildfires Threats• $850 million for hazardous fuels removal and other efforts to prevent
wildfires on public lands. Making these investments today will create jobs in the short run, but also save
long term costs of fighting fires in the future.
• State and Private Forest Service Wildfire: $550 million for state and local volunteer programs and
hazardous fuels reduction efforts which states and communities have determined are of the highest
priority.
• Federal Forest Service Wildfire: $300 million for urgently needed hazard reduction on federal lands.
Bureau of Indian Affairs• $500 million to address maintenance backlogs at schools, dams, detention and
law enforcement facilities, and over 24,000 miles of roads. BIA schools alone have an over $1 billion
construction and maintenance backlog including shamefully unsafe conditions.
EDUCATION FOR THE 21st CENTURY
We will put people to work building 21st century classrooms, labs, and libraries to help our kids compete
with any worker in the world.
21st Century Classrooms
• School Construction: $20 billion, including $14 billion for K-12 and $6 billion for higher education,
for renovation and modernization, including technology upgrades and energy efficiency
improvements. Also includes $100 million for school construction in communities that lack a local
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property tax base because they contain non-taxable federal lands such as military bases or Indian
.reservations, and $25 million to help charter schools build, obtain, and repair schools.
• Education Technology: $1 billion for 21st century classrooms, including computer and science labs
and teacher technology training.
Higher Education: Tuition is up, unemployment is up, and as a result more people are choosing to go to
school to upgrade their skills and more of these students need student aid. This investment addresses
those short term needs while investing in our nation's future economic strength.
• Pell Grants: $15.6 billion to increase the maximum Pell Grant by $500, from $4,850 to $5,350.
• College Work-Study: $490 million to support undergraduate and graduate students who work.
• Student Loan Limit Increase: Increases limits on unsubsidized Stafford loans by $2,000.
• Student Aid Administration: $50 million to help the Department of Education administer surging
student aid programs while navigating the changing student loan environment.
K-12 Education: As states begin tackling a projected $350 billion in budget shortfalls these investments will
prevent cuts to critical education programs and services.
• IDEA Special Education: $13 billion for formula grants to increase the federal share of special
education costs and prevent these mandatory costs from forcing states to cut other areas of
education.
• Title I Help for Disadvantaged Kids: $13 billion for grants to help disadvantaged kids in nearly every
school district and more than half of all public schools reach high academic standards.
• Statewide Data Systems: $250 million for competitive grants to states to design and develop data
systems that analyze individual student data to find ways to improve student achievement,
providing teachers and administrators with effective tools.
• Education for Homeless Children and Youth: $66 million for formula grants to states to provide
services to homeless children including meals and transportation when high unemployment and
home foreclosures have created an influx of homeless kids.
• Improving Teacher Quality: $300 million, including $200 million for competitive grants to school
districts and states to provide financial incentives for teachers and principals who raise student
achievement and close the achievement gaps in high-need schools and $100 million for competitive
grants to states to address teacher shortages and modernize the teaching workforce.
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Early Childhood Development
Child Care Development Block Grant: $2 billion to provide child care services for an additional
300,000 children inlow-income families while their parents go to work. Today only one out of
seven eligible children receives care.
• Head Start: $2.1 billion to provide comprehensive development services to help 110,000 additional
children succeed in school. Funds are distributed based on need. Only about half of all eligible
preschoolers and less than 3 percent of eligible infants and toddlers participate in Head Start.
• IDEA Infants and Families: $600 million for formula grants to help states serve children with
disabilities age 2 and younger.
LOWER HEALTHCARE COSTS
To save not only jobs, but money and lives, we will update and computerize our healthcare system to cut
red tape, prevent medical mistakes, and help reduce healthcare costs by billions of dollars each year.
• Health Information Technology: $20 billion to jumpstart efforts to computerize health records to cut
costs and reduce medical errors.
• Prevention and Wellness Fund: $3 billion to fight preventable chronic diseases, the leading cause of
deaths in the U.S., and infectious diseases. Preventing disease rather than treating illnesses is the
most effective way to reduce healthcare costs. This includes hospital infection prevention,
Preventive Health and Health Services Block Grants for state and local public health departments,
immunization programs, and evidence-based disease prevention.
• Healthcare Effectiveness Research: $1.1 billion for Healthcare Research and Quality programs to
compare the effectiveness of different medical treatments funded by Medicare, Medicaid, and SCHIP.
Finding out what works best and educating patients and doctors will improve treatment and save
taxpayers money.
• Community Health Centers: $1.5 billion, including $500 million to increase the number of uninsured
Americans who receive quality healthcare and $1 billion to renovate clinics and make health
information technology improvements. More than 400 applications submitted earlier this year for
new or expanded CHC sites remain unfunded.
• Training Primary Care Providers: $600 million to address shortages and prepare our country for
universal healthcare by training primary healthcare providers including doctors, dentists, and
nurses as well as helping pay medical school expenses for students who agree to practice in
underserved communities through the National Health Service Corps.
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• Indian Health Service Facilities: $550 million to modernize aging hospitals and health clinics and
make healthcare technology upgrades to improve healthcare for underserved rural populations.
HELP WORKERS HURT BY THE ECONOMY
High unemployment and rising costs have outpaced Americans' paychecks. We will help workers train and
find jobs, and help struggling families make ends meet.
Helping Workers Find Jobs
• Training and Employment Services: $4 billion for job training including formula grants for adult,
dislocated worker, and youth services (including $1.2 billion to create up to one million summer
jobs for youth). The needs of workers also will be met through dislocated worker national
emergency grants, new competitive grants for worker training in high growth and emerging
industry sectors (with priority consideration to "green" jobs and healthcare), and increased funds
for the YouthBuild program. Green jobs training will include preparing workers for activities
supported by other economic recovery funds, such as retrofitting of buildings, green construction,
and the production of renewable electric power.
• Vocational Rehabilitation State Grants: $500 million for state formula grants for construction and
rehabilitation of facilities to help persons with disabilities prepare for gainful employment.
• Employment Services Grants: $500 million to match unemployed individuals to job openings
through state employment service agencies and allow states to provide customized services. Funds
are targeted to states with the greatest need based on labor force, unemployment, and long-term
unemployed rates.
Community Service Employment for Older Americans: $120 million to provide subsidized
community service jobs to an additiona124,0001ow-income older Americans.
Unemployment Insurance Benefits
• Benefits Extension: $27 billion to continue the current extended unemployment benefits program -
which provides up to 33 weeks of extended benefits -through December 31, 2009 given rising
unemployment.
• Increased Benefits: $9 billion to increase the current average unemployment insurance benefit from
roughly $300 per week, paid out of State trust funds, by $25 per week using Federal funds, through
December 2009. There are currently 5.3 million workers receiving regular UI and an additiona11.9
million receiving extended benefits.
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• Unemployment Insurance Modernization: Provides funds to states though a "Reed Act" distribution,
tied to states' meeting specific reforms to increase unemployment insurance coverage for low-wage,
part-time, and other jobless workers.
COBRA Healthcare for the Unemployed• $30.3 billion to extend health insurance coverage to the
unemployed, extending the period of COBRA coverage for older and tenured workers beyond the 18
months provided under current law. Specifically, workers 55 and older, and workers who have worked for
an employer for 10 or more years will be able to retain their COBRA coverage until they become Medicare
eligible or secure coverage through a subsequent employer. In addition, subsidizing the first 12 months of
COBRA coverage for eligible persons who have lost their jobs on or after September 1, 2008 at a 65 percent
subsidy rate, the same rate provided under the Health Care Tax Credit for unemployed workers under the
Trade Adjustment Assistance program. [Ways and Means]
Medicaid Coverage for the UnemRlo,~ $8.6 billion to provide 100 percent Federal funding through 2010
for optional State Medicaid coverage of individuals (and their dependents) who are involuntarily
unemployed and whose family income does not exceed aState-determined level, but is no higher than 200
percent of poverty, or who are
receiving food stamps.
Attacking the Housing Crisis
Public Housing Capital Fund: $5 billion for building repair and modernization, including critical
safety repairs. Every dollar of Capital Fund expenditures produces $2.12 in economic return. $4
billion of the funds will be distributed to public housing authorities through the existing formula
and $1 billion will be awarded through a competitive process for projects that improve energy
efficiency.
• HOME Investment Partnerships: $1.5 billion to help local communities build and rehabilitate low-
income housing using green technologies. Thousands of ready-to-go housing projects have been
stalled by the credit crunch. Funds are distributed by formula.
• Native American Housing Block Grants: $500 million to rehabilitate and improve energy efficiency
at some of the over 42,000 housing units maintained by Native American housing programs. Half of
the funding will be distributed by formula and half will be competitively awarded to projects that
can be started quickly.
• Neighborhood Stabilization: $4.2 billion to help communities purchase and rehabilitate foreclosed,
vacant properties in order to create more affordable housing and reduce neighborhood blight.
• Homeless Assistance Grants: $1.5 billion for the Emergency Shelter Grant program to provide short
term rental assistance, housing relocation, and stabilization services for families during the
economic crisis. Funds are distributed by formula.
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• Rural Housing Insurance Fund: $500 million to support $22 billion in direct loans and loan
guarantees to help rural families and individuals buy homes during the credit crunch. Last year
these programs received $13.4 billion more in applications than they could
• fund.
• Self-Help and Assisted Homeownership Program: $10 million for rural, high-need areas to
undertake projects using sustainable and energy-efficient building and rehabilitation practices.
Funds will be awarded by competition to projects that can begin quickly.
• Lead Paint: $100 million for competitive grants to local governments and nonprofit organizations to
remove lead-based paint hazards inlow-income housing.
• Rural Community Facilities: $200 million to support $1.2 billion in grants and loans to rural areas
for critical community facilities, such as for healthcare, education, fire and rescue, day care,
community centers, and libraries. There are over $1.2 billion in applications pending.
Alleviating Hunger
• Supplemental Nutrition Assistance: $20 billion to provide nutrition assistance to modest-income
families and to lift restrictions that limit the amount of time individuals can receive food stamps.
• Senior Nutrition Programs: $200 million for formula grants to states for elderly nutrition services
including Meals on Wheels and Congregate Meals.
• Afterschool Meals: $726 million to increase the number of states that provide free dinners to
children and to encourage participation by new institutions by increasing snack reimbursement
rates.
• Supplemental Nutrition Program Information Systems: $100 million to improve state management
information systems for the WIC program.
P~vments to Disabled and Elderlk $4.2 billion to help 7.5 million low-income disabled and elderly
individuals with rising costs by providing an additional SSI payment in 2009 equal to the average monthly
federal payment under the program (approximately $450 for an individual and $630 for a couple). This
one-time payment will serve as an immediate economic stimulus as half of SSI recipients have no other
form of income and the other half average outside income of less than $450 per month.
Community Services Block Grant• $1 billion for grants to local communities to support employment, food,
housing, and healthcare efforts serving those hardest hit by the recession. Community action agencies
have seen dramatic increases in requests for their assistance due to rising unemployment, housing
foreclosures, and high food and fuel prices.
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Community Development Block Grants: $1 billion for community and economic development projects
including housing and services for those hit hard by tough economic times.
Emergenc~Food and Shelter: $200 million to help local community organizations provide food, shelter,
and support services to the nation's hungry, homeless, and people in economic crisis including one-month
utility payments to prevent service cut-off and one-month rent or mortgage assistance to prevent evictions
or help people leave shelters. Funds are distributed by formula based on unemployment and poverty rates.
Low-Income Home Energy Assistance: $1 billion to help low-income families pay for home heating and
cooling at a time of rising energy
costs.
Child Support Enforcement: $1 billion to provide federal incentive funds for states to collect support owed
to families.
Social Security Administration Disability Backlog and Claims Processing $500 million to help the Social
Security Administration process a steep rise in disability and retirement claims, getting people their
benefits faster, and preventing existing backlogs from getting worse. Within this total, $40 million will help
SSI upgrade health information technology.
Centers for Independent Living $200 million for state formula grants to help individuals with disabilities
continue to live in their communities.
AmeriCorps Pro rg ams: $200 million to put approximately 16,000 additional AmeriCorps members to work
doing national service, meeting needs of vulnerable populations and communities during the recession.
Compassion Capital Fund: $100 million for grants to faith- and community-based organizations to provide
critical safety net services to needy individuals and families.
Deeartment of Labor Worker Protection and Oversight• $80 million to ensure that worker protection laws
are enforced as recovery infrastructure investments are carried out.
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SAVE PUBLIC SECTOR JOBS AND PROTECT VITAL SERVICES
We will provide relief to states, so they can continue to employ teachers, firefighters, and police officers
and provide vital services without having to unnecessarily raise middle class taxes.
Medicaid Aid to States (FMAPI: $87 billion to states, increasing through the end of FY 2010 the share of
Medicaid costs the Federal government reimburses all states by 4.8 percent, with additional relief tied to
rates of unemployment. This approach has been used in previous recessions to prevent cuts to health
benefits for their increased low-income patient loads at a time when state revenues are declining.
State Education and Other Budget Priorities: $120 billion to states and school districts to stabilize budgets
and prevent tax increases and deep cuts to critical education programs, including:
$41 billion to local school districts through Title I ($13 billion), IDEA ($13 billion), a new School
Modernization and Repair Program ($14 billion), and the Education Technology program ($1
billion).
$79 billion in state fiscal relief, including: $39 billion to local school districts and public colleges and
universities distributed through existing state and federal formulas; $15 billion to states as bonus
grants as a reward for meeting key performance measures; and $25 billion to states for other high
priority needs such as public safety and other critical services, which may include education.
Temporary Assistance for Needy Families: $2.5 billion for block grants to help States deal with the surge in
families needing help during the recession and to prevent them from cutting work programs and services
for abused and neglected children.
State and Local Law Enforcement: $4 billion to support state and local law enforcement including $3 billion
for the Byrne Justice Assistance formula grants to support local law enforcement efforts with equipment
and operating costs, and $1 billion for the COPS hiring grant program, to hire about 13,000 new police
officers for three years. The grantee is responsible for at least 25% in matching funds and must commit to
use their own funds to keep the officer on board in the fourth year.
Periodic Census and Programs. Communications: $1 billion for work necessary to ensure a successfu12010
census, including $150 million for expanded communications and outreach programs to minimize
undercounting of minority groups.
OTHER IMPORTANT POLICY PROVISION
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Medicare and Medicaid Regulations: The bill extends the moratorium on Medicaid and Medicare
regulations through October 1, 2009.
SUMMARY OF TAX PROVISIONS
Chairman Rangel Outlines Economic Recovery Package
Bill would provide critical tax, health, job training benefits for families, incentives to create jobs
WASHINGTON, D.C. -Ways and Means Committee Chairman Charles B. Rangel (DNY) today released
details of the economic recovery package falling under the jurisdiction of the Committee. This
groundbreaking plan will provide critical tax, health and job-training benefits to American families,
incentives for businesses to grow and create jobs and assistance for those who have lost their jobs or are
economically disadvantaged.
"The critical state of our economy calls for swift, comprehensive action and this package will
provide relief to all communities and all sectors of the American economy," said Chairman Charles B.
Rangel (D-NY). "This recovery package will provide tremendous tax relief, health care and job
training benefits for families struggling to make ends meet, while also giving businesses the boost
they need to create new jobs. We have also designed specific provisions to help State and local
governments fund critical infrastructure projects to improve our roads, schools, bridges and
airports, while also maintaining and creating good-paying jobs for working families. This package
was developed with strong coordination between the House and Senate leaders, President-elect
Obama and his economic team. I look forward to working with all parties involved toward a swift
passage."
The Recovery legislation will be formally introduced in the coming days, and is expected to receive
consideration in the Ways and Means Committee next week. An outline of the provisions under the Ways
and Means Committee's Jurisdiction included in the Economic Recovery package follows:
Tax Relief for Individuals
• "Making Work Pay Credit"
• Expand Earned Income Tax Credit (EITC)
• Increase in child tax credit, $0 floor
Education
• Simplification of education credits w/ $2,500 credit for first four years of higher education expenses
(increase income limitations), with credit partially-refundable (40% refundable)
Housing
• Remove repayment requirement on $7,500 first-time home buyer credit for homes purchased after
2008 and before termination of credit (June 30, 2009)
• Coordination provisions with new grant program for low-income housing being designed by the
Financial Services Committee
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Business
• Bonus depreciation
• 5-year carryback of net operating losses (excluding companies receiving TARP benefits, Fannie Mae,
Freddie Mac)
• Extension of increased small business expensing
• Expand work opportunity tax credit for disconnected youth and unemployed, recently-discharged
veterans
• Prospectively repeal Treasury Section 382 ruling
State and Local Governments
• Allow financial institutions to purchase State and local bonds and other changes
• Repeal AMT limits on new private activity bonds
• Taxable bond option for governmental bonds
• School construction bonds
• One year deferral of withholding tax on government contractors
Distressed Areas
Provide tax exempt bonds and tax credit bonds to "recovery zones." These tax exempt bonds and tax
credit bonds can be used for a wide array of purposes to stimulate economic development, including
job training and education. A "recovery zone" would be an area within a State, city or county that
has exhibited high unemployment, foreclosures or poverty. These bonds would be allocated
automatically to States and large municipal governments based on the number of unemployed
individuals within that area.
Energy Tax Incentives
• Long-term extension of renewable energy production tax credit
• Temporary election to claim the investment tax credit in lieu of the production tax credit
• Coordination provisions with new grant program for renewable energy projects being designed by
the Energy and Commerce Committee (sections 45 and 48 projects)
• Clean Renewable Energy Bonds ("CREBs")
• Qualified Energy Conservation Bonds
• Energy efficiency and conservation tax incentives under sections 25C, 25D and 48
• Smart energy conservation, energy efficiency, and renewable energy R&D credit
• Refueling property credit expansions
Trade Adjustment Assistance (TAA)
• Updates, modernizes and expands TAA to cover service workers, and substantially improves and
extends coverage to manufacturing workers
• Triples funds for job training
Unemployment Insurance (UI)
• Encourage UI Modernization
• Continue the Emergency Unemployment Compensation Program
• Increase UI checks by $25/week
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Additional Temporary Assistance for Needy Families (TANF)
• Provide additional TANF Contingency Funds to serve needy families
Supplemental Security Income (SSI)
• Provide aone-time additional SSI Payment to Low-Income elderly and disabled recipients
Child Support Enforcement Funding
• Restore federal funding for Child Support Enforcement for 2 years
COBRA Healthcare for the Unemployed
• Provides temporary subsidies for health insurance coverage to those who have lost their jobs.
• Extends the availability of unsubsidized COBRA coverage for older and tenured workers beyond the
18 months provided under current law
Health Information Technology (HIT)
• Establishes standards, payment incentives and privacy protections to encourage the widespread
adoption of health information technology.
Extends Moratorium on Selected Medicare Regulations through October 1, 2009
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