Congresswoman Mazie K. Hirono

The Recovery Act and Hawaii

American Recovery and Reinvestment Act: Hawai‘i’s 2nd Congressional District

The American Recovery and Reinvestment Act of 2009 is a critical piece of legislation to bolster our struggling economy and invest in our country’s future. The Recovery Act will create and save jobs; help state and local governments with their budget shortfalls, including in education and Medicaid benefits; cut taxes for working families; and invest in the long-term health of our economy.

In addition, it provides for unprecedented levels of accountability, oversight, and transparency to ensure that American taxpayers know how every dollar is being invested. The Recovery Act will save or create approximately 15,000 jobs in Hawai‘i and provide other benefits to thousands of people in need in our state.

Among its provisions:
• 500,000 workers and their families have started to receive a tax reduction through the Making Work Pay Tax Credit program;
• 110,000 Hawaiians have seen an increase in their Supplemental Nutrition Assistance Program benefits (food aid);
• 86,000 middle-income taxpayers will NOT pay the Alternative Minimum Tax;
• 24,000 people have seen a boost in their unemployment benefits;
• 15,000 patients will be treated at 18 new community health centers;
• 49,000 children are covered by the expanded Child Tax Credit provision, and;
• 11,000 students and families will benefit from the new American Opportunity Tax Credit to promote college affordability.

WHERE AND HOW ARE RECOVERY ACT FUNDING BEING SPENT

Fiscal responsibility, transparency, and accountability are critical to the success of this legislation. For this reason, the Recovery Act requires that every dollar spent be posted publicly on www.recovery.gov. This website provides up-to-date information on how and where these federal funds are being utilized.

HOW THE RECOVERY ACT IS HELPING HAWAII'S UNEMPLOYED

Extension of Unemployment Benefits
The package continues the extended unemployment benefits program, which provides up to 33 weeks of extended unemployment benefits.

Improving Unemployment Benefits
The bill increases benefits by about $25 a week to help put more money in your pocket.

Health Insurance for Unemployed Workers
For workers who have lost their jobs, the legislation provides a 65 percent subsidy to cover COBRA payments for up to 9 months.

Job Training
The bill also directs millions of dollars to Hawaii to assist the state's dislocated workers find jobs or receive the necessary job training to get back to work.

THE RECOVERY ACT HELPS ISLAND SMALL BUSINESSES

Helps Businesses Invest in New Equipment
The bill helps businesses invest in new equipment by extending a 2008 tax provision that allows businesses to write-off fifty percent of the cost of depreciable property (e.g., equipment, tractors, wind turbines, solar panels, and computers).

Tax Incentives
The bill also extends the maximum Net Operating Loss carryback period from two years to five years for small businesses. This allows businesses to use losses from previous years to reduce tax liability during these difficult economic times.

THE RECOVERY ACT HELPS HAWAII'S SCHOOLS

Investments in Our Island Schools
The Recovery Act provides Hawaii with approximately $157 million over the next two years to improve public education in our state. This money will be used to hire new teachers or prevent teacher layoffs as well to modernize schools.

Increases Pell Grant
The bill also increases the maximum Pell Grant by $500 to a maximum of $5,350 in 2009.

THE RECOVERY ACT ASSISTS ISLAND COMMUNITIES

Investments in Infrastructure
The recovery package includes nearly $246 million for the State of Hawaii to improve its roads and bridges, and mass transit systems, all of which will strengthen our communities and create jobs.

Support to Law Enforcement
The legislation provides funding to local law enforcement agencies to create and protects jobs in order to prevent crime and keep our communities safe.

Improve our Water Infrastructure
The recovery bill contains $50.1 million for clean water projects in Hawaii.

Stabilize the Housing Market
To help communities deal with the housing crisis, the bill provides $2 billion for the Neighborhood Stabilization Fund, which is designed to help communities purchase and rehabilitate foreclosed homes.