WASHINGTON, D.C. – Today Congresswoman Lois Capps released praised the House’s quick action to pass bipartisan economic stimulus legislation, the Recovery Rebates and Economic Stimulus for the American People Act.  The legislation was passed by an overwhelming vote of 385 to 35 and now moves to the Senate for further consideration.

 “I am pleased the House has moved quickly and in a bipartisan fashion to pass an economic stimulus package that will provide much needed relief to the American people,” said Capps.  “While I would have liked to have seen more resources devoted to increases in food stamps, unemployment assistance and aid to states this economic stimulus package is a good first step in addressing growing concerns about our economy.  Our proposal is timely, targeted and temporary, and it will quickly put money in the hands of low and middle-income Americans and encourage businesses to invest."

Congress is working to pass a final economic stimulus package before February 15.  If the Senate and the President quickly approve the final proposal, rebates up to $600 per individual and $1,200 per couple, plus $300 per child for up to two children, could be in the hands of taxpayers as early as mid-May.  The legislation passed by the House today will provide a recovery rebate to 117 million families, including 35 million families who work but do not earn enough to pay income taxes and 13 million senior citizens.  It is estimated that the legislation will provide an average tax rebate of $887 to 13,300,000 families in California for a total $11.8 billion in aid across the state.

“In addition to providing rebates to families across the country to stimulate the economy, we need to address the growing crisis in the housing market which is destabilizing our economy,” said Capps.  “The House has already passed important legislation to prevent predatory lending tactics and protect homeownership.  This economic stimulus package works in concert with those efforts by offering mortgage lending reforms and other solutions to help families facing foreclosure refinance their loans and get counseling.”

Specifically the bipartisan legislation includes provisions to help families avoid losing their homes to foreclosure. The bill expands affordable mortgage loan opportunities for families at risk of foreclosure through the Federal Housing Administration.  To enhance credit availability in the mortgage market, the measure also includes a one-year increase in the loan limits for single family homes from Fannie Mae and Freddie Mac.

“Our economic stimulus package goes beyond providing immediate economic relief to families and offers important support for small businesses to reinvest in their companies and the American economy,” said Capps.

The bipartisan plan includes tax cuts for small businesses, doubling the amount small businesses can immediately write off their taxes for capital investments, and encouraging investments in new equipment.  Additionally, the plan offers immediate tax relief for all businesses to invest in new plants and equipment by speeding up depreciation provisions, so that firms can write off an additional 50 percent for investments purchased in 2008.

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Pictured above: (center) Congresswoman Capps meets with Central Coast firefighters to discuss emergency preparedness.