Senator Kent Conrad | North Dakota
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Kent Conrad

American Recovery and Reinvestment Act of 2009

Creating Jobs, Investing in Our Country's Future, and Cutting Taxes For North Dakota

Final Passage
February 17, 2009

Congress voted late last week to send the bipartisan American Recovery and Reinvestment Act of 2009 to the Obama Administration for signature into law. This urgently-needed legislation requested by President Obama will begin to put the nation's economy back on track. Millions of Americans are struggling. We face the most severe economic problems in generations. That's why it was critical that we passed this legislation. It will create good-paying jobs; make investments in America's future; and cut taxes for working families. Our plan also delivers transparency and accountability to guarantee that all taxpayer money is invested responsibly.

What does this mean for North Dakota?

According to the Senate Committee on Appropriations, the American Recovery and Reinvestment Act of 2009 is estimated to provide North Dakota approximately $492 million in appropriations formula funding. ** North Dakota will also receive hundreds of millions of additional dollars in tax relief and additional Medicaid funding for hospitals and doctors. Some of the North Dakota programs benefitting from the legislation include:

North Dakota's Infrastructure and Science
Education and Training in North Dakota
North Dakota's Energy
Indian Country Investments
Protecting the Vulnerable in North Dakota
Law Enforcement in North Dakota
Extended Unemployment Insurance for North Dakota
Tax Relief for North Dakota Families and Small Businesses

North Dakota's Infrastructure and Science

Investments in our physical and cyber infrastructure will put North Dakotans to work immediately rebuilding our crumbling roads and bridges, and will also enable the creation of a stronger and more efficient infrastructure for the 21st century economy.

  • $19,651,000 through the Drinking Water State Revolving Fund to address drinking water infrastructure needs
  • $19,537,800 through the Clean Water State Revolving Fund to address clean water infrastructure needs
  • $170,126,497 in Highway Funding to be used on activities eligible under the Federal-aid Highway Program's Surface Transportation Program. Projects could also include rail and port infrastructure activities at the discretion of the states
  • $10,997,090 in Transit Formula Funding for investments in mass transit
  • $3,450,860 through the Public Housing Capital Fund to enable local public housing agencies to address a backlog in capital needs - especially those improving energy efficiency in aging developments
  • $4,584,031 in HOME Funding 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
  • $2,595,642 through the Homelessness Prevention Fund to be used 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 North Dakota

In order to compete in the 21st Century, we must have a well-educated workforce, capable of adapting to an ever-changing economic environment. Investing in education now will ensure that the next generation of North Dakota's workers is ready and able to meet the challenge of global competition. In the near-term, millions of workers have seen their jobs disappear, and find themselves unable to match their skill sets with existing opportunities. Providing job training in new and expanding fields will help to lower the unemployment rate and help today's workers better compete against foreign competition.

  • $85,793,287 through the State Fiscal Stabilization Fund to local school districts and public colleges and universities in addition to 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 services, which may include education
  • $26,552,000 for Special Education Part B State Grants 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
  • $4,839,000 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
  • $34,391,455 for Title I Education for the Disadvantaged to help close the achievement gap and enable disadvantaged students to reach their potential
  • $2,999,687 in State Employment Service Grants to match unemployed individuals to job openings through state employment service agencies and allow North Dakota to provide customized reemployment services
  • $1,021,903 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
  • $1,246,875 for Department of Labor's Adult State Grants
  • $2,947,500 for Department of Labor's Youth State Grants
  • $1,646,433 for Department of Education Vocational Rehabilitation to help individuals with disabilities prepare for and sustain gainful employment

North Dakota's Energy

The American Recovery and Reinvestment Act of 2009 will provide investments in areas critical to the development of clean, efficient, American energy, including modernizing energy transmission, research and development of renewable energy technologies, and modernizing and upgrading government buildings and vehicles.

  • $24,533,000 through the State Energy Program
  • $25,780,846 through the Weatherization Assistance Program

Indian Country Investments (Investments are nationwide)

According to Senator Byron Dorgan, Chairman of the Senate Committee on Indian Affairs, "Nowhere in this nation are jobs and construction improvements more needed than on American Indian reservations. Tribal communities suffer an average unemployment rate of 50% and have faced longstanding infrastructure needs."

To address these concerns, the Senate Committee on Appropriations, through the American Recovery and Reinvestment Act of 2009, has included approximately $2.9 billion in national funding to create jobs, improve infrastructure, and generally improve the quality of life of Native Americans in North Dakota:

  • Improving Indian Health Service and Indian Health Facilities ($500 million).
  • Enhancing Tribal Economic Opportunities
  • Improving Access to Health Care
  • Strengthening Indian Education
  • Improving Tribal Infrastructure
  • Addressing Tribal Public Safety and Justice
  • Improving Tribal Housing
  • Improving Indian Reservation Roads
  • Improving drinking water and water service systems on reservations
  • Expanding Nutrition Programs

Protecting the Vulnerable in North Dakota

The current economic crisis has affected all North Dakotans, but none more so than the most vulnerable among us. The spending proposed here will serve to lessen the blow of the current recession, providing immediate relief for children, the poor, and others who may find themselves struggling to put food on the table or a roof over their head. It will also address the urgent need to provide safe and secure places to live, even in neighborhoods that are struggling with high unemployment and surging foreclosure rates.

  • $230,073 for National School Lunch Program Equipment Assistance
  • $166,682 through the Emergency Food Assistance Program
  • $31,951,140 in Supplemental Nutrition Assistance Program benefits (formerly Food Stamps)
  • $163,399 for the Emergency Food and Shelter Program, which provides 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
  • $3,643,862 in Child Care and Development Block Grants to provide quality child care services for in low-income families who increasingly are unable to afford the high cost of day care
  • $1,566,664 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
  • $4,606,333 in Community Services Block Grants 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
  • $1,729,716 for Community Development Block Grants for community and economic development projects including housing and services for those hit hard by tough economic times.
  • $500,000 for Senior Meals Programs to help senior meals programs cope with steep increases in food and fuel costs. Many programs are reducing meal deliveries to seniors or closing meal sites

Law Enforcement in North Dakota

Nearly every sector of the American job market has suffered job loss and programming cuts, including state and local law enforcement. Cuts in this field can have a devastating direct and indirect effect on the health of a community by way of increased crime, lowered property values, business closings, and the loss of good paying, upwardly-mobile, middle class growing jobs.

  • $5,000,000 in Byrne/JAG grants to support law enforcement efforts
  • $142,682 for crime victims compensation and assistance
  • $403,670 in Internet Crimes Against Children Grants 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
  • $882,508 in Violence Against Women Grants 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 who are in need of transitional housing, short-term housing assistance, and related support services

Extended Unemployment Insurance for North Dakota

Unemployment in North Dakota stood at 3.5 percent in December 2008 (the last month for which we have data). The Department of Labor estimates that North Dakota could receive $14.6 million in new funding if North Dakota fully enacts the UI 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 29,000 workers who have lost their jobs in this recession.

In addition, the economic recovery plan will alleviate the tax burden for already struggling Americans collecting unemployment benefits by temporarily suspending the federal income tax on the first $2,400 of benefits per recipient in 2009.

Tax Relief for North Dakota Families and Businesses

According to the Senate Committee on Finance, the following are examples of tax provisions in the American Recovery and Reinvestment Act of 2009 that will help North Dakota businesses and families, create jobs and get North Dakota's economy moving and create jobs:

  • Up to $400 for workers (or $800 for married couples) in the new Making Work Pay Tax Credit for 280,000 workers and their families
  • $250 to Social Security beneficiaries, SSI recipients, and disabled veterans
  • $2,500 for 6,000 additional families in North Dakota who will qualify for the new American Opportunity Tax Credit that makes college more affordable for 3.8 million families nationwide
  • Extended and increased Homebuyer Tax Credit to both help aspiring homeowners and stabilize plummeting home prices
  • Extended Bonus Depreciation and Small Business Expensing through 2009, allowing businesses that make capital investments to immediately deduct one-half the cost. Small businesses can immediately deduct 100 percent of the cost of these investments

The American Recovery and Reinvestment Act of 2009 would protect over 26 million working families across the nation from the Alternative Minimum Tax, representing thousands of dollars in additional income taxes. According to the Congressional Research Service, 23,000 North Dakotans would be protected from the Alternative Minimum Tax in 2009.

** The benefits described in this fact sheet represent estimates in appropriations formula funding. It is not a complete list of all the programs included in the American Recovery and Reinvestment Act of 2009. North Dakota will receive additional tax relief benefits and additional Medicaid funding for hospitals and doctors.