America greeted the New Year with a sense of historic opportunity and challenge. Across this great nation, families are struggling to make ends meet during the worst economic downturn in decades. Millions have lost their jobs and remain unemployed, millions have lost or may lose their homes, and millions are watching their American dream slip from their grasp.

But, a new era in our great American democracy dawned last week with the inauguration of President Obama, bringing a renewed sense of hope to the American people. This hope is based on the promise of a better future and the trust the American people have placed in the hands of President Obama and their representatives in Congress. We have heard their cries for help, we have heeded President Obama’s call to action to rebuild our economy, and we will rekindle the dream that has faded for so many.

Congress has acted swiftly to develop economic recovery legislation with President Obama and his advisers. We have crafted a comprehensive package that will provide benefits to every sector of our economy, targeting tax relief to middle America, poor America and businesses that can create new jobs. Our economic recovery efforts will go directly to help families struggling during this downturn, providing benefits to the millions who have lost their jobs through no fault of their own.

The plan also creates incentives for businesses to invest in new technologies and hire new workers to get our economy running again. In order to restore our economic health, we must start at the local level, investing directly in our people and communities to improve our infrastructure — our roads, schools and bridges — projects that will create new jobs immediately and help maintain America’s competitive edge in the global marketplace.

The cornerstone of the recovery bill passed by the Ways and Means Committee is the Making Work Pay tax credit, which would provide tax relief to nearly 95 percent of working families in America. Low-income working families will also see tremendous tax relief through the expansion of the Earned Income Tax Credit. This means millions of families will have more money in their pockets from each paycheck to keep a roof over their heads and food on their tables. We also provide tax relief to millions of families with children by expanding eligibility for the child tax credit to help keep our kids healthy and happy.

I can think of no better stimulus for our economy than helping American workers and their families, especially those who have lost their jobs. Specifically, the plan would extend unemployment benefits through Dec. 31, 2009 and increase the benefit provided by $25 each week, while providing assistance to help the unemployed maintain their health insurance coverage while seeking new work.

This bill would also modernize the unemployment system to help states implement the program more efficiently and cover more workers. Failure to take action and strengthen the social safety net during a crisis like this would be devastating to the physical health and wellbeing for millions of families and the economic health of our nation.

Finally, if we are to reinvigorate our economy, we must create new, good-paying jobs. By extending the enhanced expensing limits for small businesses and keeping more generous depreciation rules in effect for others, this plan helps businesses invest immediately in technology to grow and create new jobs. We also provide businesses with specific incentives to hire recently discharged, unemployed veterans and disconnected youth so that we can reincorporate them into our communities and grow together.

One area where we are primed for tremendous growth is in the development and use of renewable energy. This recovery package continues an investment in the production of renewable energy to create new, green jobs and reduce America’s dependence on foreign oil.

I am proud of the work this Congress has done, with President Obama, to produce a comprehensive response to the economic crisis gripping our nation. Issues like unemployment, foreclosure, loss of healthcare and business closures happen to all Americans regardless of race, creed, gender or political persuasion. In times like these, we need to resist the urge to fall back on poisonous political attacks and embrace the common bond that unites us all — the dream of what America can and should be.

President Obama has issued a call to action to tackle the challenges we face. I am confident that, with this recovery plan and the shared dream of a brighter future, our nation will emerge from this period stronger than ever.

This OP-Ed was originally published by The Hill on Tuesday, January 27, 2009.

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