For Immediate Release
February 12, 2009 |
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FOR MORE INFORMATION:
Hilarie Chambers
Office: 202.225.4961
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Recovery Package to Provide Major Benefits to Michigan |
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Unprecedented Assistance for Unemployed Workers, Relief for the State, and Targeted Investments in Michigan’s Economic future |
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(Washington D.C.)- Congress has reached agreement on a major economic recovery and reinvestment package to create jobs, jumpstart economic activity and transform our economy. The impact of this package will be particularly important to Michigan families and in the State’s effort to create jobs and re-shape our economy. The U.S. House is scheduled to vote on the Recovery package tomorrow.
“Our economy is reeling, and this comprehensive recover package sends a strong message to families that we are acting aggressively to support them during this downturn, to jumpstart economic activity and make key investments for the future,” said Rep. Sander Levin. “The revisions to the Unemployment Insurance system and the Trade Adjustment Assistance program are historic and will be essential to supporting families during the downturn and to training for new jobs.”
“This package is a good balance for Michigan: immediate economic assistance for families, quick job creation, targeted support for areas like education and health care key to the fabric of families and communities, and investments in energy and advanced automotive technologies,” concluded Levin.
Summary of Some Key Provisions for Workers and Individuals
Provides 95% of working families with tax relief through a Making Work Pay tax credit of up to $400 per individual ($800 for couples). An estimated 3.9 million Michigan families will receive the credit. Provides a payment of $250 to Social Security beneficiaries, SSI recipients, and veterans receiving disability compensation and pension benefits from the VA.
Extending and Improving Unemployment Benefits
Continues through December 2009 the extended unemployment benefits program which will enable 161,870 additional jobless workers in Michigan to qualify for extended benefits.
Temporarily suspends the taxation of some unemployment benefits for individuals
Increases unemployment benefits for 20 million jobless workers by $25 per week.
Encourages states to modernize their UI systems to keep up with the changing workforce with expanded coverage. The State of Michigan will immediately receive $16 million in Administrative funding, plus $77 million because it already qualifies for one of the modernization standards.
Waives the interest on the money states have borrowed from the federal government for the UI programs. This saves the State of Michigan $40 million.
Provides the full 100% of the extended benefit program to states that qualify and implement this program. The Extended Benefit program is a permanent part of the law (different from the above temporary extension) that allows States to fund additional weeks of unemployment. The permanent law is usually paid for 50/50 federal/state. Michigan entered the EB program during the last week of January 2009 and could provide to unemployed workers who have exhausted all UI benefits an additional 13 weeks of assistance.
Provides Health Insurance for Unemployed Workers for the first time. Currently, laid-off workers, under the COBRA program, can buy into their former employer’s health insurance. But the premiums are often prohibitively expensive. In order to help people maintain their health coverage, the bill provides a 60% subsidy for COBRA premiums for up to 9 months.
Historic Expansion of Trade Adjustment Assistance program to cover many more workers over the next two years who lose their jobs because of increased imports or factory shifts and to increase the training funds and improve health care coverage.
Summary of Key Provisions for Advanced Technologies in Automotive and Manufacturing Sectors
Provides $2 billion to support U.S. development of advanced vehicle batteries and battery systems through loans and grants so that America can lead the world in transforming the way automobiles are powered.
Provides incentives to buy new cars, including light trucks and SUVs, with a tax deduction for State and local sales taxes paid on the purchase.
Provides a tax credit for families that purchase plug-in hybrid vehicles of up to $7,500 to spur the next generation of American cars with a 200,000 per manufacturer cap that sets us on a path of reaching President Obama’s goal of a million plug-ins by 2015.
Provides $580 million for the National Institute of Standards and Technology, including the Technology Innovation Program and the Manufacturing Extension Partnership.
Establishes a new manufacturing investment tax credit for investment in advanced energy facilities, such as facilities that manufacture components for the production of renewable energy, advanced battery technology, and other innovative next-generation green technologies.
Summary of Other Key Investment and Job Creation Provisions
Provides $27.5 billion for modernizing roads and bridges and requires states to obligate at least half of the highway/bridge funding within 120 days.
Provides $8.4 billion for investments in public transportation.
Provides $6 billion to states and localities for Clean Water infrastructure and safe drinking water.
Provides $5 billion to create jobs by improving the energy efficiency of more than one million modest-income homes through weatherization.
Establishes a $53.6 billion State Fiscal Stabilization Fund to help prevent job losses and cutbacks in education and other key services. The Fund includes $40.6 billion to local school districts to be used to prevent cutback and layoffs and modernize schools.
Provides $13 billion for Title I education and $12.2 billion for Special Education/IDEA.
Provides $4 billion for State and local law enforcement efforts.
Provides $1 billion for the Community Development Block Grant (CDBG) program for community and economic development projects.
Importantly for the State of Michigan, the Recovery package also provides Michigan with an additional $2 billion over three years in additional federal contributions to the state’s Medicaid program
Importantly for General Motors, the Recovery package also clarifies that they will not suffer a tax liability under Section 382 because of restructuring they are doing under the federal bridge loans.
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To Contact Congressman Levin: -
Email Congressman Levin In Michigan: 27085 Gratiot Ave, Roseville, MI 48066 | (586) 498-7122 | (248) 968-2025
In Washington: 1236 Longworth House Office Building, Washington, DC 20515 | (202) 225-4961
