Press Release

FOR IMMEDIATE RELEASE
01/28/2009

Senate Economic Stimulus Package Means Billions of Dollars for Louisiana
Disaster Recovery, education and transportation needs addressed by bill approved yesterday.

WASHINGTON -- In an effort to help stimulate Louisiana and the nation's economy, United States Senator Mary Landrieu, D-La., has secured billions of dollars for a variety Louisiana education, transportation and disaster recovery projects. The economic stimulus package approved by the Senate Appropriations Committee yesterday directs much-needed funds to Louisiana to address budget shortfalls and create thousands of jobs. The bill will now move to the full Senate.

"Our current economic downturn is like nothing we have seen in the last half century," Sen. Landrieu said. "We must invest wisely, ease burdens on small businesses, make government more efficient and focus federal dollars on creating good-paying jobs in the private sector. The economic stimulus bill the Appropriations Committee passed yesterday is a tremendous start. This package will channel funding to critical Louisiana infrastructure projects, which will create thousands of jobs in our state. We also addressed the need to improve our schools, enhance law enforcement programs and fix our nation's decaying highways. I look forward to working to improve this bill for Louisiana when the full Senate debates this bill on the floor."

Below is a list of projects and programs affecting Louisiana in the economic stimulus legislation, as passed by the Senate Appropriations Committee. All numbers are approximate or based on existing formulas:

EDUCATION

• $322.1 million for Louisiana school construction, K-12.

• $101.3 million for Louisiana to support Individuals with Disabilities Education Act (IDEA) programs. IDEA funding provides early intervention, special education and related services to eligible infants, toddlers, children and youth with disabilities.

• $113.4 million for Louisiana in Title I funding, which provides financial assistance to Local Education Agencies (LEAs) and schools with high percentages of poor children to help ensure that all children meet challenging state academic standards.

• $42.5 million for Louisiana Child Care Development Block Grants.

• $3.5 billion nationally for higher education construction. Priority for these funds will be given to institutions serving minorities and those impacted by disasters.

TRANSPORTATION

• $400 million in highway funds for Louisiana.

• $79 million in transit funding for Louisiana.

• Additional funding and grants will be allocated for airport, rail, port, and maritime transportation projects. $45.57 billion is dedicated to transportation infrastructure nationwide.

CRIME PREVENTION

• $50 million to support law enforcement, including grants for Byrne Justice Assistance, COPS hiring, the Violence Against Women program, and for rural drug enforcement

DISASTER RECOVERY/PREVENTION

• $1.4 billion in hurricane recovery funding for Louisiana that has been trapped in bureaucratic red tape since the 2005 storms. The language establishes an arbitration panel that will expedite hurricane recovery projects held up by the Federal Emergency Management Agency (FEMA). The panel will have authority to determine eligibility and scope of work for proposed projects.

• Hazard mitigation funds for the Gulf Coast. FEMA has refused to reimburse homeowners who without prior approval began mitigation work after March 16, 2008 -- an arbitrary date set by the agency. The Landrieu provision will allow all homeowners who paid out of pocket to prevent damage from future storms to be reimbursed under the Road Home program regardless of bureaucratic deadlines.

• $250 million, of $800 million nationwide, for Louisiana in agriculture/rural community relief. This Landrieu language will allow farmers to pay an administrative, nominal fee to qualify for the SURE program, the agricultural disaster relief program that was created in the 2008 Farm Bill, even if they did not purchase coverage for 2008. Approximately 50 percent of Louisiana farmers had not purchased necessary coverage to qualify for a SURE payment. The Landrieu language will allow Louisiana farmers to retroactively qualify for this assistance. Also included in the language is $50 million in aid for aquaculture producers.

• $460 million for Louisiana for the Army Corps of Engineers. There is $4.6 billion nationwide for the Corps, an allocation that Sen. Landrieu will attempt to significantly increase when the bill reaches the Senate floor for debate.

• $50 million nationally for pre-positioning of emergency preparedness materials during natural disasters.

SMALL BUSINESSES

• $515 million nationwide to temporarily eliminate fees associated with 7(a) loans, the most common type of SBA-backed loan. Reducing lender fees will help reverse the downward trend in 7(a) lending, stimulating as much as $15 billion in small business loans.

• $100 million nationwide for the temporary waiver of fees on 504 loans, which provide long-term financing to small businesses that are expanding and need to buy equipment, facilities or other fixed assets. This funding is estimated to stimulate as much as $5 billion in small business loans.

• $30 million in funding nationwide for the SBA's Microloan Program, which provides small loans to qualifying small businesses. It includes $6 million for the program to handle the increase in demand from micro-businesses that have been crowded out of other financing sources as a result of the credit crisis. This funding will leverage an additional $51 million in microloans, creating or retaining an estimated 10,000 jobs.

• $24 million for complementary counseling.

OTHER

• $1 million for Louisiana for historic preservation projects. Louisiana currently has 970 applicants waiting to receive funds for their historic preservation efforts.

• A portion of the $250 million for NASA centers impacted by the 2008 disasters will go to Louisiana for Michoud.

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