In the last few weeks, as Congress has worked through the economic stimulus bill, I have tried to include you in the process. I hope it has been helpful. The House passed the bill a few minutes ago 246-183 the Senate has promised action later tonight. The President will have the bill on his desk by President’s Day as he has requested.
It is not a perfect bill. However, as the Chairman of the Congressional Black Caucus’s Task Force on the stimulus package, I can say that the measure is far better coming out of the Conference Committee. Many of the cuts that would have hurt the ability of America’s cities to create jobs have been restored. Like any good compromise, no one is happy, but I feel comfortable that the bill, as voted on, will create or preserve close to 4 million jobs.
One of my many concerns is if saving or creating 4 million jobs will be enough. But in the final analysis, we cannot sit on our hands while the middle class of America is gutted. Nor can we let the perfect be the enemy of the good. People are suffering; the economy is as bad as it has been in more than 70 years. The President has called on us to act and act now.
Last Sunday, over a thousand of our friends who work the line at Claycomo and Fairfax, their suppliers, and car dealers joined me to remind people what is at stake. Each one of them has a family, kids in school or parents to care for. They are our neighbors and, like so many, are not sure if they will have a job tomorrow.
I do not know how Members who will vote “no” this afternoon will go back to their districts and look hard working men and women in the eye who are anxious and hurting and tell them “no”.
The President believes our nation needs this package to pull out of our economic nosedive. After years of an economic policy that did not work and pushed us to the brink, it’s past time to shock our nation’s economic engine back into rhythm. The bill will pass, the President will sign it and then the hard work will begin. We have never been a nation that shies away from hard work — it is time to roll up our sleeves and pick up some shovels.
Missouri details:
· The bill provides a "Making Work Pay" tax cut of up to $800 for 2,270,000 workers and their families, designed to start paying out immediately into workers’ paychecks, as well as tax cuts to spur businesses large and small.
· The bill modernizes roads and bridges to create jobs with an extra $637,121,984 in Missouri and provides nearly $831 million in total infrastructure investments in our state.
· The bill also invests in modernizing schools and making college more affordable with improved Pell Grants for the 138,591 Pell Grant recipients here in Missouri and a higher education tax credit for 74,000 students in our state.
· The bill assists 219,700 Missourians that are out of work and those who have lost their health care.
Below are details of the American Recovery and Reinvestment Plan, as agreed upon by the House and Senate. You can track the effect the stimulus measures are having on the economy at www.recovery.gov
Providing Tax Relief:
“Making Work Pay” Tax Credit. The bill would cut taxes for more than 95% of working families in the United States. For 2009 and 2010, the bill would provide a refundable tax credit of up to $400 for working individuals and $800 for working families. This tax credit would be calculated at a rate of 6.2% of earned income, and would phase out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 for married couples filing jointly). Taxpayers can receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks, or through claiming the credit on their tax returns. This proposal is estimated to cost $116.199 billion over 10 years.
Economic Recovery Payment to Recipients of Social Security, SSI, Railroad Retirement and Veterans Disability Compensation Benefits. The bill would provide a one-time payment of $250 to retirees, disabled individuals and SSI recipients receiving benefits from the Social Security Administration, Railroad Retirement beneficiaries, and disabled veterans receiving benefits from the U.S. Department of Veterans Affairs. The one-time payment is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $14.225 billion over 10 years.
Refundable Credit for Certain Federal and State Pensioners. The bill would provide a one-time refundable tax credit of $250 in 2009 to certain government retirees who are not eligible for Social Security benefits. This one-time credit is a reduction to any allowable Making Work Pay credit. This proposal is estimated to cost $218 million over 10 years.
Increase in Earned Income Tax Credit. The bill would temporarily increase the earned income tax credit for working families with three or more children. Under current law, working families with two or more children currently qualify for an earned income tax credit equal to forty percent (40%) of the family’s first $12,570 of earned income. This credit is subject to a phase-out for working families with adjusted gross income in excess of $16,420 ($19,540 for married couples filing jointly). The bill would increase the earned income tax credit to forty-five percent (45%) of the family’s first $12,570 of earned income for families with three or more children and would increase the beginning point of the phase-out range for all married couples filing a joint return (regardless of the number of children) by $1,880. This proposal is estimated to cost $4.663 billion over 10 years.
Increase Eligibility for the Refundable Portion of Child Credit. The bill would increase the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15 percent of the taxpayer’s earned income in excess of $8,500. The bill would reduce this floor for 2009 and 2010 to $3,000. This proposal is estimated to cost $14.830 billion over 10 years.
“American Opportunity” Education Tax Credit. The bill would provide financial assistance for individuals seeking a college education. For 2009 and 2010, the bill would provide taxpayers with a new “American Opportunity” tax credit of up to $2,500 of the cost of tuition and related expenses paid during the taxable year. Under this new tax credit, taxpayers will receive a tax credit based on one hundred percent (100%) of the first $2,000 of tuition and related expenses (including books) paid during the taxable year and twenty-five percent (25%) of the next $2,000 of tuition and related expenses paid during the taxable year. Forty percent (40%) of the credit would be refundable. This tax credit will be subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly). This proposal is estimated to cost $13.907 billion over 10 years.
Computers as Qualified Education Expenses in 529 Education Plans. Section 529 Education Plans are tax-advantaged savings plans that cover all qualified education expenses, including: tuition, room & board, mandatory fees and books. The bill provides that computers and computer technology qualify as qualified education expenses. This proposal is estimated to cost $6 million over 10 years.
Refundable First-time Home Buyer Credit. Last year, Congress provided taxpayers with a refundable tax credit that was equivalent to an interest-free loan equal to 10 percent of the purchase of a home (up to $7,500) by first-time home buyers. The provision applies to homes purchased on or after April 9, 2008 and before July 1, 2009. Taxpayers receiving this tax credit are currently required to repay any amount received under this provision back to the government over 15 years in equal installments, or, if earlier, when the home is sold. The credit phases out for taxpayers with adjusted gross income in excess of $75,000 ($150,000 in the case of a joint return). The bill eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase. This proposal is estimated to cost $6.638 billion over 10 years.
Sales Tax Deduction for Vehicle Purchases. The bill provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). This proposal is estimated to cost $1.684 billion over 10 years.
Temporary Suspension of Taxation of Unemployment Benefits. Under current law, all federal unemployment benefits are subject to taxation. The average unemployment benefit is approximately $300 per month. The proposal temporarily suspends federal income tax on the first $2,400 of unemployment benefits per recipient. Any unemployment benefits over $2,400 will be subject to federal income tax. This proposal is in effect for taxable year 2009. This proposal is estimated to cost $4.740 billion over 10 years.
Extension of AMT Relief for 2009. The bill would provide more than 26 million families with tax relief in 2009 by extending AMT relief for nonrefundable personal credits and increasing the AMT exemption amount to $70,950 for joint filers and $46,700 for individuals. This proposal is estimated to cost $69.759 billion over 10 years.
Creating American Jobs:
The American Recovery and Reinvestment Act also provides $311 billion in appropriations, including the following critical investments:
Investments in Infrastructure and Science - $120 billion
Investments in Health - $14.2 billion
Investments in Education and Training - $105.9 billion
Investments in Energy, including over $30 billion in infrastructure - $37.5 billion
Helping Americans Hit Hardest by the Economic Crisis - $24.3 billion
Law Enforcement, Oversight, Other Programs - $7.8 billion
Investments in Infrastructure and Science include:Infrastructure Improvements
$7.2 billion for Broadband to increase broadband access and usage in unserved and underserved areas of the Nation, which will better position the U.S. for economic growth, innovation, and job creation. ($6 billion prior to Conference)
$2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security, $430 million for construction of border points of entry, $210 million for construction of fire stations, $300 million for port, transit, and rail security, $280 million for border security technology and communication, and $240 million for the Coast Guard. ($2.3billion prior to Conference)
$4.6 billion in funding for the Corps of Engineers. ($4.5 billion prior to Conference)
$1.2 billion for VA hospital and medical facility construction and improvements, long-term care facilities for veterans, and improvements at VA national cemeteries. ($950 million prior to Conference)
$3.1 billion for repair, restoration and improvement of public facilities at on public and tribal lands. (same prior to Conference)
$4.2 billion for Facilities Sustainment, Restoration and Modernization to be used to invest in energy efficiency projects and to improve the repair and modernization of Department of Defense facilities to include Defense Health facilities. ($3.75 billion prior to Conference)
$2.33 billion for Department of Defense Facilities including quality of life and family-friendly military improvement projects such as family housing, hospitals, and child care centers. ($2.1 billion prior to Conference)
$2.25 billion through HOME and the Low Income Housing Tax Credit program to fill financing gaps caused by the credit freeze and get stalled housing development projects moving. ($1.5 billion prior to Conference)
$1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times. (same prior to Conference)
$1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought. ($500 million prior to Conference)
Transportation
$27.5 billion is included for highway investments ($30 billion prior to Conference)
$8.4 billion for investments in public transportation. ($13 billion prior to Conference)
$1.5 billion for competitive grants to state and local governments for transportation investments. ($3 billion prior to Conference)
$1.3 billion for investments in our air transportation system. ($3 billion prior to Conference)
$9.3 billion for investments in rail transportation, including Amtrak, High Speed and Intercity Rail. ($1.1 billion prior to Conference)
Public Housing
$4 billion to the public housing capital fund to enable local public housing agencies to address a $32 billion backlog in capital needs -- especially those improving energy efficiency in aging buildings. ($5 billion prior to Conference)
$2 billion for full-year payments to owners receiving Section 8 project-based rental assistance. (new)
$2 billion for the redevelopment of abandoned and foreclosed homes. ($4.2 billion prior to Conference)
$1.5 billion for homeless prevention activities, which will be sent out to states, cities and local governments through the emergency shelter grant formula. (same prior to Conference)
$250 million is included for energy retrofitting and green investments in HUD-assisted housing projects. ($1.5 billion prior to Conference)
Environmental Clean-Up/Clean Water
$6 billion is directed towards environmental cleanup of former weapon production and energy research sites. (same prior to Conference)
$6 billion for local clean and drinking water infrastructure improvements. ($2 billion prior to Conference)
$1.2 billion for EPA’s nationwide environmental cleanup programs, including Superfund. ($800 million prior to Conference)
$1.38 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas. ($1.5 billion prior to Conference)
Science
$1 billion total for NASA. ($600 million prior to Conference)
$3 billion total for National Science Foundation (NSF). (same prior to Conference)
$2 billion total for Science at the Department of Energy including $400 million for the Advanced Research Projects Agency—Energy (ARPA-E). (same prior to Conference)
$830 million total for the National Oceanic and Atmospheric Association (NOAA). ($600 million prior to Conference)
Investments in Health include:$19 billion, including $2 billion in discretionary funds and $17 billion for investments and incentives through Medicare and Medicaid to ensure widespread adoption and use of interoperable health information technology (IT). This provision will grow jobs in the information technology sector, and will jumpstart efforts to increase the use of health IT in doctors’ offices, hospitals and other medical facilities. This will reduce health care costs and improve the quality of health care for all Americans. ($20 billion prior to Conference)
$1 billion for prevention and wellness programs to fight preventable diseases and conditions with evidence-based strategies. ($3 billion prior to Conference)
$10 billion to conduct biomedical research in areas such as cancer, Alzheimer’s, heart disease and stem cells, and to improve NIH facilities. ($2 billion prior to Conference)
$1.1 billion to the Agency for Healthcare Research and Quality, NIH and the HHS Office of the Secretary to evaluate the relative effectiveness of different health care services and treatment options. (same prior to Conference)
Investments in Education and Training include:
$53.6 billion for the State Fiscal Stabilization Fund, including $39.5 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8.8 billion to states for high priority needs such as public safety and other critical services, which may include education and for modernization, renovation and repairs of public school facilities and institutions of higher education facilities. ($79 billion prior to Conference)
$13 billion for Title 1 to help close the achievement gap and enable disadvantaged students to reach their potential. (same prior to Conference)
$12.2 billion for Special Education/IDEA to improve educational outcomes for disabled children. This level of funding will increase the Federal share of special education services to its highest level ever. ($13 billion prior to Conference)
$15.6 billion to increase the maximum Pell Grant by $500. This aid will help 7 million students pursue postsecondary education. (same prior to Conference)
$3.95 billion for job training including State formula grants for adult, dislocated worker, and youth programs (including $1.2 billion to create up to one million summer jobs for youth). ($4 billion prior to Conference)
Investments in Energy include:$4.5 billion for repair of federal buildings to increase energy efficiency using green technology. ($6.7 billion prior to Conference)
$3.4 billion for Fossil Energy research and development. ($2.4 billion prior to Conference)
$11 billion for smart-grid related activities, including work to modernize the electric grid. (same prior to Conference)
$6.3 billion for Energy Efficiency and Conservation Grants. ($6.9 billion prior to Conference)
$5 billion for the Weatherization Assistance Program. ($6.2 billion prior to Conference)
$2.5 billion for energy efficiency and renewable energy research. ($2 billion prior to Conference)
$2 billion in grant funding for the manufacturing of advanced batteries systems and components and vehicle batteries that are produced in the United States. (same prior to Conference)
$6 billion for new loan guarantees aimed at standard renewable projects such as wind or solar projects and for electricity transmission projects. ($8 billion prior to Conference)
$1 billion for other energy efficiency programs including alternative fuel trucks and buses, transportation charging infrastructure, and smart and energy efficient appliances. ($900 million prior to Conference)
Help for Workers and Families Hardest Hit by the Economic Crisis includes:$19.9 billion for additional Supplemental Nutrition Assistance Program (SNAP), formerly Food Stamps, to increase the benefit by 13.6 percent. ($20 billion prior to Conference)
Child Care Development Block Grant: $2 billion to provide quality child care services for an additional 300,000 children in low-income families who increasingly are unable to afford the high cost of day care. (same prior to Conference)
Head Start & Early Head Start: $2.1 billion to allow an additional 124,000 children to participate in this program, which provides development, educational, health, nutritional, social and other activities that prepare children to succeed in school. (same prior to Conference)
State and Local Law Enforcement:$4 billion total to support law enforcement efforts. (same prior to Conference)
$555 million to expand the Department of Defense Homeowners Assistance Program (HAP) during the national mortgage crisis. (new)
The American Recovery and Reinvestment Plan provides oversight, accountability, and transparency to ensure that taxpayer dollars are invested effectively, efficiently, and as quickly as possible.Funds are distributed whenever possible through existing formulas and programs that have proven track records and accountability measures already in place.
Numerous provisions in the bill provide for expedited but effective obligation of funds so that dollars are invested in the economy as quickly as possible.
The Government Accountability Office and the Inspectors General are provided additional funding for auditing and investigating recovery spending.
A new Recovery Act Accountability and Transparency Board will coordinate and conduct oversight of recovery spending and provide early warning of problems.
A special website will provide transparency by posting information about recovery spending, including grants, contracts, and all oversight activities.
State and local whistleblowers who report fraud and abuse are protected.
There are no earmarks in this bill.
