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

$550 billion in thoughtful and carefully targeted priority investments with unprecedented

accountability measures built in.

The package contains targeted efforts in:

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 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.

accountability will help guarantee taxpayer dollars are spent wisely and Americans can

see results for their investment.

with proven track records and accountability measures already in place.

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.

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.

review management of recovery dollars and provide early warning of problems. The

seven member board includes Inspectors General and Deputy Cabinet secretaries.

additional funding and access for special review of recovery funding.

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.

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.

production systems by allowing for a smarter and better grid and focusing investment

in renewable technology.

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 a ten-fold

return on that investment.

underserved areas can link up to the global 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.

that lead to long term energy cost savings;

investments;

classrooms, labs, and libraries to help our kids compete with any worker in the world, this

package provides:

billion), a new School Modernization and Repair Program ($14 billion), and the

Education Technology program ($1 billion).

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.

percent of American workers, and spur investment and job growth for American

Businesses. [marked up by the Ways and Means Committee]

and computerize our healthcare system to cut red tape, prevent medical mistakes, and

help reduce healthcare costs by billions of dollars each year.

provide better care to patients and introduce cost-saving efficiencies.

healthcare treatments.

outpaced Americans’ paychecks. We will help workers train and find jobs, and help

struggling families make ends meet.

keeping their employer provided healthcare under COBRA and providing short-term

options to be covered by Medicaid.

rising food costs.

they can continue to employ teachers, firefighters and police officers and provide vital

services without having to unnecessarily raise middle class taxes.

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.

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.

power generation and transmission projects.

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.

and local governments make investments that make them more energy efficient and

reduce carbon emissions.

upgrade HUD sponsored low-income housing to increase energy efficiency, including

new insulation, windows, and furnaces. Funds will be competitively awarded.

efficiency and renewable energy research, development, demonstration, and

deployment activities to foster energy independence, reduce carbon emissions, and

cut utility bills. Funds are awarded on a competitive basis to universities, companies,

and national laboratories.

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.

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.

energy costs by weatherizing their homes and make our country more energy

efficient.

energy efficient Energy Star products to replace old appliances, which will lower

energy bills.

government with alternative fuel automobiles that will save on fuel costs and reduce

carbon emissions.

electric vehicle technologies.

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.

renewable energy to power weapons systems and military bases.

governments purchase efficient alternative fuel vehicles to reduce fuel costs and

carbon emissions.

demonstration projects.

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.

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.

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 a ten-fold

return on that investment.

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.

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.

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.

complete its Buildings and Facilities Master Plan, as well as renovations and

construction needs of the National Institute for Occupational Safety and Health.

including high-energy physics, nuclear physics, and fusion energy sciences and

improvements to DOE laboratories 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.

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.

development of medical countermeasures for chemical, biological, radiological, and

nuclear threats, and for cyber security protections at HHS.

$600 million for satellite development and acquisitions, including climate sensors and

climate modeling.

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 interoperability standards for

manufacturing.

across the country. ARS has a list of deferred maintenance work at facilities of

roughly $315 million.

facilities and equipment, including improvements to laboratories, earthquake

monitoring systems, and computing capacity.

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.

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.

Technology Innovation Program to accelerate research in potentially revolutionary

technologies with high job growth 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 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.

American households to convert from analog television transmission to digital

transmission.

jobs - rebuilding our crumbling roads and bridges, modernizing public buildings, and

putting people to work cleaning our air, water, and land.

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.

billion gallons of gasoline and reducing carbon emissions by 37 million metric tons each

year.

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.

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.

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.

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.

improve safety and reduce congestion. An estimated $41 billion in eligible airport

infrastructure projects are needed between 2007-2011.

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.

bridges deemed hazardous to marine navigation, thereby removing obstructions and

improving the safety of marine navigation.

year old Social Security Administration’s National Computer Center to meet growing

needs for processing retirement and disability claims and records storage.

have been unable to handle workload increases.

information technology platforms for the Department to meet security requirements

post-9/11.

at USDA’s headquarters.

ambulatory surgical centers, and $455 million in renovations to provide state-of-theart

medical care to service members and their families.

facilities.

renovations to improve housing for our troops.

Reserve units across the country with operations and training facilities and utilities

infrastructure.

Department has identified a $5 billion backlog in needed repairs, including energy

efficiency projects, at its 153 medical facilities.

memorial repairs at cemeteries for American heroes.

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.

while improving energy efficiency.

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.

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.

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.

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.

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.

hydropower, and navigation infrastructure critical to the economy. The Corps has a

construction backlog of $61 billion.

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.

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.

control systems along the international segment of the Rio Grande damaged by

hurricane Katrina and other serious storms.

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.

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.

contaminated as a result of the nation’s past nuclear activities. Accelerating the

completion of projects will reduce long-term costs.

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.

projects.

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.

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.

volunteer programs and hazardous fuels reduction efforts which states and

communities have determined are of the highest priority.

reduction on federal lands.

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.

our kids compete with any worker in the world.

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 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.

computer and science labs and teacher technology training.

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.

$4,850 to $5,350.

students who work.

by $2,000.

administer surging student aid programs while navigating the changing student loan

environment.

these investments will prevent cuts to critical education programs and services.

share of special education costs and prevent these mandatory costs from forcing states

to cut other areas of education.

disadvantaged kids in nearly every school district and more than half of all public

schools reach high academic standards.

and develop data systems that analyze individual student data to find ways to improve

student achievement, providing teachers and administrators with effective tools.

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.

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.

for an additional 300,000 children in low-income families while their parents go to

work. Today only one out of seven eligible children receives care.

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.

children with disabilities age 2 and younger.

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 records to cut costs and reduce medical errors.

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.

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.

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.

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.

health clinics and make healthcare technology upgrades to improve healthcare for

underserved rural populations.

High unemployment and rising costs have outpaced Americans’ paychecks. We will help

workers train and find jobs, and help struggling families make ends meet.

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.

for construction and rehabilitation of facilities to help persons with disabilities

prepare for gainful employment.

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.

provide subsidized community service jobs to an additional 24,000 low-income older

Americans.

benefits program – which provides up to 33 weeks of extended benefits - through

December 31, 2009 given rising 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 additional 1.9 million receiving extended

benefits.

“Reed Act” distribution, tied to states’ meeting specific reforms to increase

unemployment insurance coverage for low-wage, part-time, and other jobless

workers.

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]

funding through 2010 for optional State Medicaid coverage of individuals (and their

dependents) who are involuntarily unemployed and whose family income does not

exceed a State-determined level, but is no higher than 200 percent of poverty, or who are

receiving food stamps.

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.

and rehabilitate low-income housing using green technologies. Thousands of readyto-

go housing projects have been stalled by the credit crunch. Funds are distributed

by formula.

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.

rehabilitate foreclosed, vacant properties in order to create more affordable housing

and reduce neighborhood blight.

program to provide short term rental assistance, housing relocation, and stabilization

services for families during the economic crisis. Funds are distributed by formula.

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.

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.

nonprofit organizations to remove lead-based paint hazards in low-income housing.

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.

to modest-income families and to lift restrictions that limit the amount of time

individuals can receive food stamps.

nutrition services including Meals on Wheels and Congregate Meals.

free dinners to children and to encourage participation by new institutions by

increasing snack reimbursement rates.

improve state management information systems for the WIC program.

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.

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.

development projects including housing and services for those hit hard by tough

economic times.

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.

home heating and cooling at a time of rising energy costs.

collect support owed to families.

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.

individuals with disabilities continue to live in their communities.

AmeriCorps members to work doing national service, meeting needs of vulnerable

populations and communities during the recession.

organizations to provide critical safety net services to needy individuals and families.

worker protection laws are enforced as recovery infrastructure investments are carried

out.

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.

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 lowincome

patient loads at a time when state revenues are declining.

districts to stabilize budgets and prevent tax increases and deep cuts to critical education

programs, including:

billion), a new School Modernization and Repair Program ($14 billion), and the

Education Technology program ($1 billion).

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.

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.

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.

ensure a successful 2010 census, including $150 million for expanded communications

and outreach programs to minimize undercounting of minority groups.

Medicare regulations through October 1, 2009.