Washington, DC— Last evening the House of Representatives passed the American Recovery and Reinvestment Act of 2009 by a vote of 244 yeas and 188 nays. The fiscal stimulus bill, estimated to be $819 billion, represents the first major victory for the Obama administration.  Congresswoman Watson, who supported the legislation, delivered the following remarks:

Madame Speaker, the economy is in a crisis not seen since the Great Depression.  Credit is frozen and consumer purchasing power is in decline.  Retirement savings accounts have been decimated.  2 million jobs have been lost in the last four months and we are expected to lose another 3 to 5 million next year.   The number of Americans who can no longer afford to carry health insurance and purchase needed medications has swelled during the economic downturn.

Tough times demand bold and decisive action and that’s why I rise today in strong support of the American Recovery and Reinvestment Bill of 2009.   This estimated $819 billion stimulus package is the first crucial step in a concerted effort to save 3 to 4 million jobs, jumpstart our economy, and begin the process of transforming it for the 21st century.

The legislation is transparent and has unprecedented accountability measures built in.  It contains specific priority investments that target the areas of clean energy, science and technology, infrastructure modernization, education, tax cuts, healthcare reform, worker retraining and assistance, and public sector job creation. 

Madame Speaker, the State of California, as you know, is facing an unprecedented budget crisis that in part has been caused by the severe economic downturn.   The budget crisis is so acute that the state could wind up in default and be forced to suspend tax refunds, student grants, and other state payments.  This is not a pretty picture.

The package we are considering today will not be a cure-all for California’s budget woes, but it will deliver a needed stimulus shot to our ailing state economy and put people to work.  It will provide police and teachers with critical resources.  It will assist the homeless and those who are on the edge of being homeless.  It will plug gaps in the state’s battered Medicaid program.   It will rebuild the state’s core infrastructure.  It will target tax relief to middle class families.  And it will put California on the path to energy independence.  In total, California is projected to receive $32 billion in economic recovery funding under the American Recovery and Reinvestment Act.

Madame Speaker, President Obama inherited an economy on the brink of collapse.  The bill we are considering today is the right mix of spending and tax relief that will begin to lead our nation back from the abyss.  At its heart, the legislation is a jobs creation bill that will spur economic growth.  The non-partisan Congressional Budget Office (CBO) estimates that two-thirds of the money will be spent in the first eighteen months and will create 3.6 million more jobs.  

The recovery package combined with other needed actions, I believe, should make an important contribution to alleviating the current crisis.  I urge my colleagues to put our nation back on the path of economic prosperity by supporting this important fiscal stimulus bill.