January 28, 2009
Press Release

Reed Announces RI to Receive Nearly $600 Million in Federal Aid for Jobs, Schools, and Roads

WASHINGTON, DC – U.S. Senator Jack Reed (D-RI), a member of the Senate Appropriations Committee, today announced that the committee approved its portion of the U.S. Senate’s 2009 American Recovery and Reinvestment Act, which contains over $598 million in direct aid for Rhode Island to create jobs, invest in schools, roads, and public works projects. 

At a time, when the state is struggling with its budget, this federal funding will provide targeted relief for essential health and education programs and put people to work building and repairing schools, bridges, and highways.  It also contains vital funding for Rhode Island’s school districts and universities as well as money for critical job training programs to help unemployed Rhode Islanders find new jobs.

“This federal aid will not solve all of our economic problems, but it will immediately inject hundreds of millions of dollars into Rhode Island’s economy and lay the foundation for future economic growth.  There is a growing need to address the significant economic issues facing our state and the nation.  This recovery package is a first step to restore confidence in the economy, create jobs, and make a down payment on our future by investing in green jobs, energy efficiency, and our children’s education,” said Reed. 

“This infusion of federal aid will help take some of the pressure off of state and local government budgets by putting people back to work and helping cash-strapped communities and school districts meet their obligations.  Investing in our schools improves the quality of life for everyone in the community and can bolster property values for homeowners,” continued Reed.  “This federal investment in our state must be spent wisely and with strict accountability, transparency, and oversight.  We have included $100 million for auditors to track and review how localities and states manage these funds, and we will make the results easily accessible to the public online at recovery.gov.”

The Senate Appropriations Committee also gave its stamp of approval to several of Reed’s longstanding priorities, including a raise in the maximum Pell Grant from $4,731 to $5,012 in the 2009-2010 school year; a boost for the Teacher Quality Enhancement Grants of the Higher Education Act to improve the teaching workforce, address teacher retention, and provide new support and incentives for recently unemployed individuals to enter the teaching field; and new funds to weatherize thousands of homes across the state to help Rhode Islanders save on their utility bills.

As a member of the Appropriations Committee, Reed has advocated for directing more federal aid to states like Rhode Island that have been hit hardest by the economic downturn and have unemployment rates above the national average.  Reed succeeded in including the following language in the Appropriations Committee’s report: “One of the most important objectives of this bill is to reduce unemployment and foster economic development throughout the nation.  The Committee notes that many states have experienced high levels of unemployment and other economic loss, such as home foreclosures, for sustained periods of time.  These states will face a longer road to economic recovery than their counterparts.  Therefore, the Committee urges the head of the relevant Federal department or agency to consider using the funds in this Act to increase assistance to such economically distressed states and communities so long as it is consistent with the intent of this legislation and does not conflict with provisions governing the use of funds.”

The Senate Appropriations Committee portion of the economic recovery plan includes the following federal funding for Rhode Island job, education, and transportation programs:

$220 million for a State Stabilization Fund; $134 million will be dedicated to public education, including early-childhood, K-12 and higher education and $86 million will be available for all government services.

$132.4 million for highway rehabilitation and restoration, including bridge repair, infrastructure investments that improve highway safety, and highway resurfacing.

$49.3 million for transit capital funding, including purchasing or rehabilitating buses, improving stations and terminals, and preventative maintenance.

$48.1 million for Individuals with Disabilities Education Act (IDEA) funding to help ensure that students with disabilities have access to a quality public education.

$46.3 million for the state clean water and drinking water funds to increase the availability of clean water and drinking water, including $26.7 million for the Clean Water State Revolving Fund and $19.6 million for the Drinking Water State Revolving Fund.

$40.6 million for Title I assistance to give a boost to economically disadvantaged schools.

$18.2 million for higher education building renovation to rehabilitate and improve the energy efficiency of academic, research, and student housing facilities.

$13.3 million for job training, including $5.6 million to help workers who have lost their jobs retrain for a new career; $2.1 million to help adults improve job skills; and $5.6 million for youth programs.

$11.9 million for the Weatherization Assistance Program to help families save on their energy bills.

$7.5 million for improving student academic achievement at struggling, high-poverty schools.

$5.2 million for Child Care and Development Block Grants, which expand and improve the quality of childcare services.

$4.8 million for the Education Technology State Grant program, which focuses on improving student achievement through the use of technology in elementary and secondary schools.

$1.9 million for Head Start to provide comprehensive early childhood development, educational, health, nutritional, social and other services to Rhode Island preschool children and their families.

Rhode Island will also receive millions more in federal aid through programs for energy conservation and renewable energy and local police departments through the Byrne-Justice Assistance Grants program. 

The Senate Finance Committee also approved legislation containing benefits for Rhode Island through tax cuts, unemployment insurance benefits, and health care programs.  That measure will be combined with the Appropriations bill to create a larger economic recovery package which will be considered by the full Senate as soon as next week.  Senator Reed has been working to ensure that the state’s recent global Medicaid waiver does not adversely affect the estimated $400 million in funding to help offset the increased need for health care during the current deep recession. 

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