House Passes Bill That Would Provide Billions to State and City For Infrastructure, Schools, Healthcare and Other Important Priorities.

As Congress moved one step closer to jumpstarting the nation's economy out of its current recession, New Yorkers can rest assured that economic relief is on the way thanks to the leadership of Congressman Chares Rangel.

The House of Representatives on Wednesday successfully passed the American Recovery and Reinvestment Act of 2009 (HR1) to provide tax relief to working families and businesses, create jobs and make critical investments in America’s future by a vote of 244-188. The move comes less than a week after important provisions of the bill moved through Rangel’s Ways and Means Committee by vote of 24-13.

"This package delivers real and practical relief to the hard working families of the city and the hundreds of small business that are the backbone of our economy," said Rangel, Chair of the House’s Ways and Means Committee. "Its a package that puts more money in the hands of everyday Americans through tax cuts and extension of unemployment benefits.. It provides states and cities with the money for long-needed improvements in our schools and public housing buildings, as well as for the kind of career assistance and job training that we ensure that everyone reaches their full potential, especially our disconnected youth and veterans." Hearings in Washington and meetings with business, labor and other community leaders in New York and Washington at the end of 2008 and the begining of 2009 helped to provide important input on provisions that would provide meaningful benefits to families and help businesses create jobs.

“Today we make a down payment on America’s future, with investments in infrastructure to improve our roads, schools and bridges, and help our workers compete in the global economy. We are also continuing our investment in renewable energy to reduce our dependence on foreign oil and create new 21st Century, green jobs."

Providing Local Help
Rangel stressed that New York City and the state would see significant benefits from the recovery package. Among those that will see immediate relief will be the unemployed: an estimated 1.1 million New Yorkers who are currently out of work will benefit from the $25 per week increase in unemployment insurance as well as the additional 33 weeks of benefits that the Federal government is looking to provide until December 31, 2009. (That includes almost 175,000 New Yorkers who would have seen their benefits end in April 2009.)

In addition, the bill would provide assistance for workers who have lost their health insurance by providing a temporary 65 percent subsidy for COBRA healthcare premiums, making funding available to states that elect to provide Medicaid coverage to unemployed and uninsured individuals and their families; and extending the qualification for COBRA benefits for older and long term workers until they obtain new employer-sponsored coverage or become eligible for Medicare. (Under current law, eligible workers may continue to receive health coverage through a previous employer’s health plan for up to 18 months, but are responsible for 102 percent of the cost of that coverage.

The Center on Budget and Policy Priorities estimates that as many as 6.7 million resident in New York state will get some kind of tax relief from the “Making Work Pay” tax credit. Low-income workers with three or more children will also get an increase in their Earned Income Tax Credit, and millions more families would now be eligible for up to $1000 from the child tax credit. In fact, the Tax Policy Center estimates that as many as 930,000 New York children under the age of 17 could benefit from this provision.

The recovery package would also help families cope with the rising cost of education expenses though an enhanced tax credit for tuition and school expenses.

The recovery package would also help State and local governments invest in infrastructure projects to improve roads, schools and bridges while also creating jobs. Relief will be targeted to areas that need it most to create “Recovery Zones” aiding communities that have been hardest hit by increasing unemployment and foreclosures. This direct investment for infrastructure projects will help State and local governments cope with increasing hardships and budget deficits.

New York businesses, large and small would also receive benefits to help them grow and create new jobs. The Act would specifically give both large and small businesses the kind of tax incentives to invest in equipment and expand to hire new workers, helping to strengthen our economy and create new jobs. It would also would help create new, green jobs by making a critical investment in renewable energy and energy efficiency.

Providing Immediate and Targeting Relief
Other benefits from the American Economic Recovery and Reinvestment Plan include:

Housing
The New York City Housing Authority will receive over $520 million for long need repairs such as the elevators that have failed in so many of its buildings.

Education
New York City will get in excess of $2 billion in funding for special education, Title I programs and for school construction and modernization.

Community Block Grants
The City will receive about $50 million in additional Community Development Block Grant funds for use in improving its communities.

Transportation
New York State could get as much as $1.3 billion in surface transportation funds for highways, streets, bridges, bike paths etc. Though cities and counties will get a 20% share of this grant, the lion's share. The metropolitan area of New York City, Northern New Jersey and Westchester will get $214 million-- $864 million -- will go to fund transit projects. The state will also receive an additional $654 million for water and sewer projects.

Health Care
The package will help reduce potential state budge cuts by bringing in over $12 billion to the state, New York City and the counties in additional federal contributions to the Medicaid program over the next two years. This will enable Albany to reduce the level of budget cuts needed to balance the state's budget.

Hospitals and other health care providers will receive assistance to up grade their computer systems so that all health care providers can better use information technology and provide better health care.

“I truly believe that history will record this as one of our bravest moments, when we met the challenge of a sour economy and worked together to build a brighter future.” said Rangel.

Online Resources
Text of provisions in H.R. 1 approved by the Ways and Means Committee last week.

Detailed summaries of the sections of the American Recovery and Reinvestment Plan falling under the jurisdiction of the Ways and Means Committee.

More information on the The American Economic Recovery and Reinvestment Plan.

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