Rangel Praises Plan As Delivering Immediate Relief and Hope to Millions of Americans.

Ways and Means Committee Chairman Charles B. Rangel (D-NY) praised the passage of the American Recovery and Reinvestment Act of 2009 Friday, saying that it provided hope not only for those people who are jobless, but also the hopeless.”

A 246-183 majority passed the bill in the House, sending the recovery package onto the Senate where it passed by a 61-36 margin.

"This is debate is not about political philosophy, its about delivering immediate help to the millions of families and small businesses struggling to survive these tough economic times," said Rangel who represents the New York neighborhoods of the Upper West Side, Harlem, East Harlem, Washington Heights, Inwood and Marble Hill. "It provides real money for people who need real assistance during these tough times to keep putting food on their tables and a roof over their heads.

The Congressman lauded the members of the New York delegation for their support of the bill, especially fellow Ways and Means Committees colleagues Rep. Joe Crowley (D-Queens) and Rep. Brian Higgins (D- Buffalo) for their assistance during negotiations. He also praised the leadership of New York's senior Senator Charles Schumer, who wield his influence as a member of the Senate Finance Committee and Vice Chair of the Senate Democratic Conference.

Under the bill approved by the House, 3.5 million jobs will be created or maintained, including 215, 000 jobs in New York State and 7,900 in the 15th Congressional District. White House officials also estimated that 95 percent of American working families will take home a little more in each paycheck. Millions more will get the relief they deserve through an expanded child tax credit, and even millions more will have additional resources to stay out of poverty’s deadly grasp because of an enhanced earned income tax credit.

“This economic crisis demands comprehensive action and this recovery package delivers relief to every sector of our economy to help families, create and save jobs, and invest in a 21st Century economy, said Rangel. "We are making targeted investments in education and health care to ensure that American children can stay healthy and get the best education possible. We are also providing funding to local communities to put folks back to work modernizing our bridges, roads and schools. All of these investments will help reinvigorate the American economy so that we can compete and win in the global economy."

What the Bill Means For NY Families, Individuals
Among those that will see immediate relief will be the unemployed: more than 670,000 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.

In addition, the bill would provide assistance for workers who have lost their health insurance by providing a nine-month 65 percent subsidy for COBRA healthcare premiums, (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 package helps return money back to working Americans by protecting an estimated 26 million middle-class families from being hit by the AMT and through the refundable Make Work Pay tax credit of up to $400 per worker ($800 per couple filing jointly). Seniors will receive a one time $250 payment through their Social Security, SSI, Railroad Pension or Veterans pension, while low-income workers with three or more children will also get an increase in their Earned Income Tax Credit. Millions more families would now be eligible for up to $1275 from the child tax credit.

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. Families with children in college will see as much as $10,000 over four years in tax credits for higher education . (The College Tax Credit will benefit an estimated 295,000 students statewide ) Students with Pell grants - an estimated 461,816 in New York State -- will see the maximum stipends increased by $ 500. The bill also adds $300 million nationwide for work-study programs that help needy students pay for their education.

Direct Help for the City, State
The recovery package would also help State and local governments cope with increasing hardships and budget deficits by investing 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 in areas of high unemployment growth.

In addition to more funding for local law enforcement, state and local government will be able to bridge budge gaps with aid help in the following areas:

HOUSING - The New York City Housing Authority will receive over $290 million for long need repairs such as the elevators that have failed in so many of its buildings. The package also establishes a new national program to upgrade HUD-sponsored low-income housing (elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

EDUCATION - New York City will get in excess of $1 billion in education money with funds for special education, Title I, state equalization funds and for school construction and modernization. The State will also receive additional funds for Head Start as well as significant share of the over $50 billion set aside for stabilizing state budgets with respect to education. These funds will be channeled to school districts all over the state will also help fill the state's budget gap.

TRANSPORTATION - New York State could get as much as $1.3 billion in surface transportation funds for highways, streets, bridges, bike paths etc with cities and counties will get a 20% share of this grant. The metropolitan area of New York City, Northern New Jersey and Westchester will get over $800 million to fund transit projects. The state will also receive an additional $654 million for water and sewer projects.

HEALTHCARE - The package will help reduce potential state budge cuts by bringing in over $11.5 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. The Congressman was also influential in continuing moratorium on harmful Bush Administration Medicare and Medicaid regulations that would have taken well over $250 million a year from the state's health care providers.

Benefits for Businesses Large andSmall
New York businesses, large and small would also receive benefits to help them grow and create new jobs. Companies would benefit from the continuation of bonus depreciation and expensing for smaller corporations. Small business will also be able to take advantage of a more liberal rule on applying operating losses to previous years' tax liability.

The job creation tax incentives include credits to hire unemployed veterans and disconnected youth. New greener jobs would also be generated with critical investments in renewable energy and energy efficiency. Workers will also see maximum tax free employer provided transit benefits increased to $230 a month, a move that will not only help offset increased transit fare increases but also encourage more people to use public transportation.

An Important First Step
Although more work needs to be done to get the American economy back on track, Rangel said that the negotiated package was an important step forward. The stressed that the legislation has unprecedented accountability and transparency measures to help ensure that taxpayer dollars are spent wisely and effectively—including no earmarked projects and a new recovery.gov website allowing Americans to track the investments.”

“The recovery bill helps modernize our economy, keeping America at the forefront of new technology through critical investments in renewable energy to immediately create green jobs and reduce our dependence on foreign oil.," said Rangel. "We are also making landmark investments in health information technology to reduce health care costs, lower medical errors and improve the quality of care for patients nationwide.

“President Obama has issued a call to action, and Congress has responded. 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."

■