Press Release

Contact: Sabrina Siddiqui 202-226-6476

Washington, Aug 6 - Today, Congressman Dave Loebsack announced $4 million in funds from the Economic Development Agency (EDA) for Mercy Medical Center in Cedar Rapids. These funds will be used for the construction of new steam production facilities, curbing rising energy costs due to damages incurred during the floods of last summer. The new plant expansion will be well above 500-year flood levels and will be six feet about the record flood level crest of 31.12 in June 2008.

“The effects of the floods of last summer not only affected our schools and homes, but also vital infrastructure,” said Congressman Loebsack. “These funds will save 2,228 jobs, and give Mercy Medical Center the ability to continue to offer high quality care to Iowa patients. I am pleased the federal funds I secured for flood recovery are being used to help our medical facilities control costs and retain their skilled workers.”

The new facility will ensure continued operation of the Medical Center and retention of its 2,228 person workforce. This award builds on the Congressman’s continued work not only to bring federal funds into the district for disaster recovery but also to reform the way that disaster funds are distributed.

In a letter last week to the Secretary of Housing and Urban Development, Congressman Loebsack urged Secretary Donovan to allow Community Development Block Grant (CDBG) funds to assist in the transition to new power sources and offset the rising power costs due to damage to existing power and steam facilities. Congressman Loebsack will continue to work to reform the current regulations on disaster funds, and fight to distribute disaster funds in Iowa as quickly and responsibly as possible.