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FOR IMMEDIATE RELEASE 02/17/2009
WASHINGTON -- President Barack Obama today signed into law an economic recovery package that was supported and improved by Sen. Mary Landrieu, D-La. The bill will create and sustain millions of private sector jobs, strengthen national infrastructure and reduce taxes for families and businesses. The American Recovery and Reinvestment Act is estimated to create or sustain 50,000 Louisiana jobs. The legislation directs billions of dollars to Louisiana projects and programs, and the state will benefit from additional tax relief for individuals and small businesses. The state will also receive $718.1 million in State Stabilization Funds, which allow state and local governments that are suffering from budget shortfalls to pay for education programs and other services. In addition, Sen. Landrieu shepherded into the package $752 million in relief for agricultural communities impacted by 2008 disasters, and provisions to free up hurricane recovery funds and remove the $5 million cap for community disaster loans. "Throughout the debate on this economic recovery bill my focus has been on the people of Louisiana," Sen. Landrieu said. "Although Louisiana was one of only three states to create jobs during December, if this current national economic downturn is not reversed our state could eventually experience massive layoffs and job loss. Congress had to address this crisis, and now Louisiana will benefit greatly from the sweeping legislation that President Obama signed into law today. "I worked to ensure that the package included disaster relief funds and freed up more than $1 billion in recovery dollars tangled in federal red tape. The state stabilization funds also provide Gov. Jindal flexibility to ward off some of the proposed program cuts which would leave thousands of Louisianians out of work. Passing this bill is the right step to strengthen our economy and put America and Louisiana on a path to recovery." Landrieu Provisions for Louisiana During the Senate's consideration of the bill, Sen. Landrieu worked with Democrats and Republicans to include key provisions to benefit Louisiana. These Landrieu provisions include: • Arbitration panel: This provision will free $1.5 billion trapped in bureaucratic red tape since the 2005 storms. The arbitration panel 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: 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. • Community Disaster Loans: Sen. Landrieu added language that waives the $5 million cap on Community Disaster Loans to local governments affected by Hurricanes Gustav, Ike and other major disasters in 2008. These loans will provide cash-strapped Gulf Coast communities with much-needed funds for fire fighting, law enforcement, sanitation and other municipal operations. • $752 million for agriculture/rural community relief: The 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. Louisiana will receive up to $200 million. • Coastal Mapping Funding for Safer Navigation: At Sen. Landrieu's request, funding has been included for the Office of Coast Survey within the National Oceanic and Atmospheric Administration. This bureau is responsible for mapping our coastline and the seabed of our ports and navigable waterways. The Economic Recovery and Reinvestment Act steers billions of dollars to a variety of Louisiana programs, including highways, waters systems, transit systems, ports, public housing, education, energy and law enforcement projects. The bill includes the following estimated benefits for Louisiana: Infrastructure and Science • $429.9 million in highway funding, which could also include rail and port infrastructure projects at the discretion of the states. • Congress provided $4.6 billion in funding for the Army Corps of Engineers for flood protection, inland waterway locks and dams, navigation projects and coastal restoration. Louisiana is estimated to receive as much as 10 percent of the $4.6 billion total, but the Corps is still in the process of preparing the list of eligible projects. • $27.8 million to address the backlog of drinking water infrastructure needs. • $43.8 million to address the backlog of clean water infrastructure needs. • $65.7 million for investments in mass transit. • $73.5 million 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. • $39.7 million 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. • $26.7 million 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 Louisiana • $718.1million will be provided to Governor Jindal through the State Fiscal Stabilization Fund. The funding will be used for local school districts and public colleges and universities. In addition, the bill includes 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 education services. 81.8 percent of these funds are reserved for the education block grant, while 18.2 percent are considered flexible. o The remaining 18.2 percent is a flexible block grant to avert budget cuts in education or in other basic state services, such as public safety and law enforcement, services for the elderly and people with disabilities or child care. These funds can also be used for school modernization, renovation, or repair. The funds are available to states immediately, and must be spent within two years of receipt of the grant. • $188.8 million 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. • $13.4 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. • $269.5 million to help close the achievement gap and enable disadvantaged students to reach their potential. • $5.5 million to match unemployed individuals to job openings through state employment service agencies and allow Louisiana to provide customized reemployment services. • $9.8 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. • $8.8 million for Department of Labor's Adult State Grants. • $20.2 million for Department of Labor's Youth State Grants. • $9.8 million for Vocational Rehabilitation to help individuals with disabilities prepare for and sustain gainful employment. • According to the White House, the economic recovery plan provides funding to modernize at least 412 schools in Louisiana so that our children have the labs, classrooms and libraries they need to compete in the 21st century economy. • Louisianians seeking higher education will benefit from the $15.6 billion to increase the maximum Pell Grant by $500. This aid will help nearly 11,000 Louisiana students pursue higher education. Louisiana's Energy • $69.3 million to state energy offices to address their energy priorities and program funding to adopt emerging renewable energy and energy efficiency technologies. • $53.6 million to the Louisiana Housing Finance Agency through a partnership with the Louisiana Association for Community Action Partnerships for weatherization assistance. Funds go to low-income families and may support attic, wall, floor, duct and pipe insulation; cleaning air conditioners; and replacing old refrigerators. Protecting the Vulnerable in Louisiana • $1.7 million for National School Lunch Program Equipment Assistance. • $1.6 million through the Emergency Food Assistance Program. • $437 million in Supplemental Nutrition Assistance Program benefits (formerly Food Stamps). • $1.2 million for 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. • $40 million to provide quality child care services for in low-income families who increasingly are unable to afford the high cost of day care. • $14.5 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. • $23.6 million 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. • $1 million to help senior meals programs cope with steep increases in food and fuel costs. Law Enforcement in Louisiana • $34.9 million in Byrne/JAG grants to support law enforcement efforts. • $1 million to help law enforcement agencies enhance their investigative response to offenders who use the Internet, online communication systems or other computer technology to sexually exploit children. • $2.6 million for victim services programs to improve the criminal justice system's response to violent crimes against women and to assist victims of domestic violence, dating violence, sexual assault and stalking. These funds will be directed to those victims in need of transitional housing, short-term housing assistance and related support services. Extended Unemployment Insurance for Louisiana The Department of Labor estimates that Louisiana could receive $99 million in new funding if Louisiana fully enacts the Unemployment Insurance modernization incentives that the legislation would provide. According to the National Employment Law Project, this means that an additional $100 in unemployment insurance benefits will be offered to approximately 137,000 workers who have lost their jobs during this recession. Tax Relief for Louisiana Families and Small Businesses According to the White House and Senate Committee on Finance, the following are examples of tax provisions in the American Recovery and Reinvestment Act of 2009 that will help Louisiana businesses and families, create jobs and get Louisiana's economy moving: • Up to $400 for workers (or $800 for married couples) in the new Making Work Pay Tax Credit for 1.7 million Louisiana workers and their families. • $250 to Social Security beneficiaries, Supplemental Security Income recipients, and disabled veterans. • $2,500 for 77,000 additional families in Louisiana who will qualify for the new American Opportunity Tax Credit that makes college more affordable. 3.8 million families will benefit nationwide. • Extended and increased Homebuyer Tax Credit to $8,000 to both help aspiring homeowners and stabilize plummeting home prices. The provision applies to first-time homebuyers and eliminates the requirement to repay the credit for individuals who purchase between January 1, 2009 and December 1, 2009. • Extended Bonus Depreciation and Small Business Expensing through 2009, allowing businesses that make capital investments to immediately deduct one-half the cost. o Small businesses can immediately deduct 100 percent of the cost of these investments. • Protects over 26 million working families across the nation from the Alternative Minimum Tax, which would have meant thousands of dollars in additional income taxes. According to the Congressional Research Service, 207,000 Louisianians will be protected from the Alternative Minimum Tax in 2009. Temporary Assistance to Needy Families in Louisiana According to the Congressional Research Service, Louisiana would receive $17 million in Temporary Assistance to Needy Families supplemental grants under the American Recovery and Reinvestment Act of 2009. These supplemental grants provide additional assistance to states with high population growth and/or increased poverty.
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