American Recovery and Reinvestment Act

On February 17, 2009, President Barack Obama signed The American Recovery and Reinvestment Act. The $787 billion package combines tax relief for middle-class families and small businesses with critical investments in infrastructure, education, and energy efficiency. Already to date, I have helped secure funding for $50 million for rural broadband development and $151 million for high speed rail across Upstate New York, as well as $27 million for water and sewer infrastructure projects right here in the 20th District. Most importantly, the package has and will continue to save and create jobs – a vast majority of which will be created in the private sector.

While I was not in Congress to vote on the Recovery package, I supported this legislation because I believe that we needed to take bold action to create jobs and address the economic challenges facing Upstate New York. This is also why I am working to ensure that this money is spent quickly and efficiently.

Equally as important, the Recovery package is consistent with my commitment to transparency and accountability. The package contains no earmarks and requires that all investments funded by the package be posted publicly on a website (www.recovery.gov).

Below you will find details on how the Recovery package will help you, your family, and your community.

Where can I read the text of the bill?

To read the text of the bill, click here.

How can I track where Recovery money is being spent?

Consistent with my commitment to fiscal responsibility, transparency, and accountability, the Recovery legislation requires that every dollar be posted on www.recovery.gov. This website provides up-to-date information on how funds are being allocated, as well as the tools necessary for you to hold our government accountable.

Where are the Recovery Projects in my community?

To date, $559,806,947 has gone to New York’s 20th District. To view a map of Recovery projects in the 20th District, click here. 

How will I benefit from the Recovery Package?

Make Work Pay Tax Cut
Ninety-five percent of workers will benefit directly from a refundable tax credit of up to $400 per worker ($800 per couple filing jointly). Taxpayers can receive this benefit through a reduction in the amount of income tax that is withheld from their paychecks or by claiming the credit on their income tax returns.

Social Security/Disability Credit
For those who are not working, but receive Social Security, SSI, or veterans’ disability compensation through the VA, the bill provides a one-time payment of $250.

College Tuition Tax Credit
The American Opportunity Tax Credit provides a credit of up to $2,500 of the cost of tuition and related expenses.

Homebuyers Tax Credit
The provision provides first-time homebuyers with a credit of up to $8,000 for the purchase of a home and strengthens the housing market by providing additional incentives for first-time home purchases.

Sales Tax Deduction for Cars and Motor Homes
The bill provides all taxpayers with a deduction for state and local sales taxes and excise taxes on the purchase of new cars and motor homes.

I am unemployed. How will the Recovery package benefit me?

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

Increasing 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 over $66,368,188 to the State of New York to help dislocated workers find jobs or receive the necessary job training to get back to work.

How will this package help local 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.

How will the package benefit our local communities?

Investments in Infrastructure
The recovery package includes nearly $1.12 billion for the State of New York 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 $110 million to local law enforcement agencies to create and protect jobs in order to prevent crime and keep our communities safe.

Improve our Water Infrastructure
The recovery bill contains over $612 million for clean water projects for the State of New York.

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.

What will this package do for our local schools and our children’s education?

Investments in Our Local Schools
The stimulus package will provide the State of New York with over $3 billion 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.