President Barack Obama signed into law the American Recovery and Reinvestment Act of 2009 on Feb. 17. The act, Public Law 111-5, is also referred to as the “stimulus package” and is intended to help in the recovery of the U.S. economy.
The U.S. Army Corps of Engineers is directly appropriated $4.6 billion in the act for its civil works program, and expects to receive between $2 billion and $2.5 billion for military programs missions through the Department of Defense. Military programs has already received requests from non-DoD agencies for assistance in executing $1 billion in work, and additional requests are anticipated.
“The funding in the Recovery Act provides USACE with tremendous opportunities to help support the nation during this time of economic hardship,” said Lt. Gen. Robert Van Antwerp, the USACE commander. “The Corps will quickly put these funds into action to meet the President’s and Congress’s intent to get our fellow citizens back to work. At the same time, we will make every effort to ensure these funds are effectively used in ways that will provide lasting value to the nation and the American taxpayer.”
Economists estimate that USACE will create about 8,000 direct jobs for every $1 billion spent. It is also estimated that an additional 20,400 jobs will be indirectly created for each $1 billion spent in industries that supply or support construction, operation and maintenance (O&M) activities, and the industries that sell goods and services to these workers and their families.
The $4.6 billion provided for the civil works program includes $2 billion for construction and $2.075 billion for O&M. The Mississippi River and Tributaries account will receive $375 million in appropriations.
USACE has identified many potential civil works projects that meet the criteria of the legislation for funding, and in mid-March expects to publish its final list of projects to receive Recovery Act dollars. Selected projects will be distributed across the U.S. and across USACE programs to provide the nation with inland and coastal navigation, environmental, flood risk management, hydropower, recreation, and more.
The legislation sets forth project selection criteria for projects that will:
The Corps’ military programs expects to receive about $1.4 billion in military construction (MILCON) funding. The Recovery Act provides more than $3 billion in Sustainment, Restoration, and Modernization funds for Army, Air Force, and DoD health facilities, but the specific amount USACE will execute is undetermined at this time.
USACE, as the DoD construction agent, is working closely with DoD, Army, and Air Force program managers to refine project lists and timelines for project awards and construction schedules. USACE anticipates awarding contracts for child development centers, Warrior in Transition complexes, family housing, troop billeting, and hospitals.
The MILCON funds include $555 million for expanding the Homeowners Assistance Program to provide assistance to relocating military service members, civilian employees, and their families who face financial loss due to the ongoing housing crisis. The Directorate of Real Estate is developing policy guidance for implementing new authorities provided in the recovery act.
“This is certainly a historic time for the Corps,” said Van Antwerp. “In addition to the missions the Corps will do to support the Recovery Act, we are also fully engaged in our support to the Global War on Terror, the ongoing recovery along the Gulf Coast, and all the many other things we do to support the nation on a daily basis.
“I am fully confident in the ability of the men and women of the Corps to get all of this done,” Van Antwerp added. “I believe the President and Congress have also expressed their confidence in us with what we’ve been entrusted to do in the recovery act.”
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