WASHINGTON – The U.S. House of Representatives today passed a spending bill to fund the U.S. Departments of Defense, Homeland Security and Veterans Affairs for the entirety of Fiscal Year 2009, which begins on Oct. 1.  The bill also funds all other federal government agencies at current levels through March 6, 2009.

“This bill includes important funding for northern Michigan’s defense industry and Camp Grayling,” Stupak said.  “It honors the commitment we have made to our veterans.  It also includes critical loans for our domestic auto industry, which will help the industry re-tool and help Michigan workers by keeping good-paying manufacturing jobs in our state.”

DEFENSE SPENDING

The bill includes $1.02 billion for two Littoral Combat Ships (LCS) and instructs the U.S. Navy to award contracts for construction of the ships as soon as possible.  Marinette Marine in Marinette, Wis., built the first LCS ship and is a candidate for building additional ships.

The bill also includes nearly $38 million for defense projects in northern Michigan, including:

·        $16,943,000 for phase one of a barrack replacement project at Camp Grayling

·        $6.24 million for Marinette Marine Corporation to continue research on ship hull forms, demonstrating the Bow Lifting Body concept at a creditable and useful size to help transition the technology to military and homeland security applications

·        $2.4 million for Engineered Machined Products (EMP) in Escanaba to continue to develop the Advanced Thermal Management System to improve fuel efficiency and emissions on the Army’s medium duty tactical vehicles 

·        $2.4 million for Century Inc. in Traverse City to continue the development of lightweight ceramic composites to reinforce surfaces on brakes for military vehicles

·        $2 million for a live fire shoot house at Camp Grayling

·        $2 million for an urban assault course at Camp Grayling

·        $2 million for an infantry squad battle course at Camp Grayling

·        $1.6 million for Calumet Electronics in Calumet to continue work on integrated optical fiber solutions for use in future weapons systems

·        $800,000 for Century Inc. in Traverse City to explore the potential of applying its lightweight ceramic composite technology to armor for vehicles and soldiers

·        $800,000 for VIO Inc. in Marquette to research and develop improvements to the company’s wearable video camera, which is currently in use by soldiers in the field

·        $800,000 for TechGuard Security for the development of wireless sensor technology.  TechGuard Security, a Missouri-based company, is working to establish a branch in Michigan

VETERANS SPENDING

The bill provides $47.6 billion for the Department of Veterans Affairs, the largest amount ever spent on caring for veterans and their families.  It includes $133 million to increase the travel reimbursement rate from 28.5 cents per mile to 41.5 cents per mile for veterans traveling to VA clinics and hospitals.  It also contains a provision added by Stupak to freeze the deductible veterans must pay to receive their travel reimbursement.

“With gas prices at $4 a gallon it’s hard to justify an increase in the deductible veterans are required to pay for the mileage reimbursement they receive,” Stupak said.  “The approved increase in the reimbursement rate was necessary but raising the deductible defeats the purpose of increasing the reimbursement rate in the first place.  This freeze on the deductible will provide some relief for veterans, who – like all Americans – are being squeezed by skyrocketing gas prices.”

AUTO INDUSTRY

The bill includes $7.5 billion to support $25 billion in direct loans for automakers to re-tool their plants to produce the next generation of advanced technology vehicles.  The loans were approved by Congress in the Energy Security and Independence Act, which was passed in December 2007.  This is the first time Congress has provided funding for the program.

“This money is an investment in the auto industry and in hard working Americans who make our cars and trucks,” Stupak said.  “As opposed to the bailout the president has requested for Wall Street, these loans will be paid back and will result in a profit for taxpayers.  Democrats and Republicans in the Michigan delegation have worked in a bipartisan manner with House and Senate Leadership to put together this critical build out package for the automakers.”

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