Jessica Smith, (202) 228-5185
Tuesday, February 10, 2009
Statement of Senator Webb on Senate Passage of the
Economic Recovery Package
The following is a statement from Senator Jim Webb (D-VA) on the Senate’s passage of the American Recovery and Reinvestment Act of 2009:
“The Senate has reached consensus today on an economic recovery package that is designed to swiftly drive money into our struggling economy. With help for struggling families, meaningful tax cuts and concentrated funding on key infrastructure programs, I am hopeful that this responsibly crafted legislation will create millions of new jobs and begin immediately to restore America’s economic strength.
“While some will object to specific provisions of this compromise agreement, this much is clear: without today’s compromise, any hope for meaningful legislation to stimulate the economy and protect the American work force would have been lost.
“As one of those who were deeply concerned with many aspects of the original package, I was pleased to work with colleagues from both sides of the aisle, under the strong leadership of Senator Ben Nelson, to put this plan into place within a set of targeted parameters for economic renewal. We focused on programs to help families struggling under today’s serious economic downturn, on shovel-ready infrastructure and public works projects, and on addressing the housing crisis.
“The legislation approved by the Senate today also contains tax cuts for families and businesses, provisions to help unemployed Americans keep their health care and find new employment, and provides aid to help the most vulnerable.
“Great deliberation was put into this process. What we have crafted is a significant improvement over the bill originally presented in the Senate. In my view, we have done what the country has expected of responsible leaders.
“There will be sufficient time to address other meritorious programs that were in the original package but could not, in good conscience, be accepted as within the definition of a stimulus bill. They remain a priority for this President and this Congress, but this bill was designed strictly to answer the need for the immediate economic stimulus our country so desperately needs, and we have made the hard decisions necessary to meet that criterion.
“The House and Senate will now enter into conference to resolve differences in this important legislation. I am hopeful that we will have a final bill to present to the President in short order.”
A breakdown of Virginia appropriations for authorized programs with existing funding formulas follows. Note – The bill includes funding in many other areas which are either competitive grants or loans (including $5.5 billion for multimodal transportation infrastructure or justice assistance grants) or are merit based (Pell Grants).
Dollars Appropriated for Virginia
According to the Senate Committee on Appropriations, the American Recovery and Reinvestment Act of 2009 is estimated to provide approximately $2.8 billion in the following benefits:*
Investment in Virginia’s Infrastructure, Water Systems, and Housing
· $20.9 million through the Drinking Water State Revolving Fund to address the backlog of drinking water infrastructure needs
· $81.5 million through the Clean Water State Revolving Fund to address the backlog of wastewater infrastructure needs
· $699.9 million in Highway Funding to be used on activities eligible under the Federal-aid Highway Program’s Surface Transportation Program and could also include rail and port infrastructure activities at the discretion of the states
· $136.6 million in Transit Formula Funding for investments in mass transit
· $51.2 million through the Public Housing Capital Fund to enable local public housing agencies to address a national $32 billion backlog in capital needs – especially those improving energy efficiency in aging developments – in this critical element of the nation’s affordable housing infrastructure
· $44.4 million in HOME Funding to enable state and local government, in partnership with community based organizations, to acquire, construct, and rehabilitate affordable housing and provide rental assistance to poor families
· $24.9 million through the Homelessness Prevention Fund to be used for prevention activities, which include: short or medium term rental assistance, first and last month’s rental payment, or utility payments. As such, most of this funding will go directly into the economy of local communities, as the funds will be used to pay housing and other associated costs in the private market
Education and Training in Virginia
· $779.9 million through the State Fiscal Stabilization Fund to local school districts and public colleges and universities in addition to incentive grants as a reward for meeting key education performance measures and additional funding for other high priority needs such as public safety and other critical services, which may include education
· $326.3 million for Special Education Part B State Grants (IDEA) to help improve educational outcomes for individuals with disabilities, raising the federal contribution to nearly 40 percent, the level established when the law was authorized more than 30 years ago
· $15.9 million in education technology funds to purchase up to date computers and software and provide professional development to ensure the technology is used effectively in the classroom
· $193.5 million for Title I Education for the Disadvantaged to help close the achievement gap and enable disadvantaged students to reach their potential
· $8.6 million in State Employment Service Grants to match unemployed individuals to job openings through state employment service agencies and allow Virginia to provide customized reemployment services
· $10.9 million in Dislocated Workers State Grants, particularly for grants that support immediate strategies for regions and communities to meet their need for skilled workers, as well as longer term plans to build targeted industry clusters with better training and a more productive workforce
· $5.3 million for Department of Labor’s Adult State Grants
· $13.1 million for Department of Labor’s Youth State Grants
· $10.8 million for Vocational Rehabilitation to help individuals with disabilities prepare for and sustain gainful employment
Virginia’s Energy Assistance Programs
· $11.3 million through the State Energy Program; funding provided to the states through this program is typically leveraged with additional state funding and has historically every $1 invested in the program produces savings of $7.23 in reduced energy bills
· $56 million through the Weatherization Assistance Program; the investment of every $1 in the weatherization program returns $2.72 in energy and non-energy related benefits and creates 52 direct jobs and 23 indirect jobs for every $1 million invested
Human Services in Virginia
· $2.2 million for National School Lunch Program Equipment Assistance
· $1.7 million in The Emergency Food Assistance Program (TEFAP), for the distribution of the food to local food banks, food pantries, and soup kitchens that directly serve low-income and unemployed individuals (formerly Food Stamps)
· $227.5 million in Supplemental Nutrition Assistance Program (Food Stamps), the Department of Agriculture has found that each dollar SNAP recipient receives it produces $1.84 in economic activity
· $1.2 million for the Emergency Food and Shelter Program, which provides grants to nonprofit and faith-based organizations at the local level to supplement their programs for emergency food and shelter to provide for the immediate needs of the homeless
· $37.9 million in Child Care and Development Block Grants to provide quality child care services for in low-income families who increasingly are unable to afford the high cost of day care; nationally, the funding will enable States to serve an additional 300,000 children in low income families who have been hurt by the recession and are struggling to afford the high cost of child care
· $5.3 million for Head Start to allow additional children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school
· $3.2 million in Community Services Block Grants to local community action agencies for services to the growing numbers of low income families hurt by the economic crisis, such as housing and mortgage counseling, jobs skills training, food pantry assistance, as well as benefits outreach and enrollment
· $3 million for Senior Meals Programs to help senior meals programs cope with steep increases in food and fuel costs. Many programs are reducing meal deliveries to seniors or closing meal sites
Law Enforcement in Virginia
· $24.1 million in Byrne-Justice Assistance Grants—the greatest federal source helping cops-on-the-beat prevent, fight, and prosecute crime.
Additional Benefits for Virginia
Unemployment Benefits in Virginia. According to the Department of Labor, Virginia could receive $189.6 million in new funding if Virginia fully enacts the Unemployment Insurance modernization incentives that the legislation would provide.
Tax Relief for Virginia Families and Businesses. According to the Senate Committee on Finance, the following are examples of tax provisions in the American Recovery and Reinvestment Act of 2009 that will help Virginia businesses and families, create jobs and get Virginia’s economy moving:
· Up to $500 for individuals and $1,000 for married couples for the Making Work Pay Tax Credit
· $300 to Social Security beneficiaries, SSI recipients, and disabled veterans
· $2,500 for the American Opportunity Tax Credit (an increase in the tax credit for higher education and allowing the credit for four full years)
· Extended and increased Homebuyer Tax Credit to both help aspiring homeowners and stabilize plummeting home prices
· Extended Bonus Depreciation and Small Business Expensing through 2009, allowing businesses that make capital investments to immediately deduct one half the cost. Small businesses can immediately deduct 100 percent of the cost of these investments
· $1.6 billion for grants to schools and hospitals for energy efficiency and combined heat and power system projects
According to the Congressional Research Service, 815,000 Virginians would be protected from the Alternative Minimum Tax in 2009.
