Washington, DC – Congresswoman Lynn Woolsey today backed the American Recovery and Reinvestment Act, an $820  billion package of targeted spending and tax cuts to bolster the struggling economy and create millions of new jobs.  The legislation supports several initiatives, such as increased funding for food stamps, unemployment insurance, and health care that the Congressional Progressive Caucus, which Woolsey co-chairs, had repeatedly called for.  In December, Woolsey wrote to President Obama and urged him to consider a recovery package of no less than $1 trillion.

“I am pleased that so many of the Progressive Caucus priorities have been included in this recovery package, but this must be the beginning of the process, not the end,” said Woolsey.  “This is not a moment to be timid, which is why my colleagues and I have been pushing so hard on this issue.”

Among other priorities, the legislation includes a $20 billion increase for food stamps for struggling families, over $60 billion to develop alternative energy production and infrastructure, and nearly $90 billion to reimburse states for health care costs.  In addition to the $550 billion in overall investments, the legislation provides $275 billion in targeted tax cuts for middle class workers.

California, which has been hit particularly hard in recent months, stands to gain over $32 billion, including tax credits of $500 for more than 12 million California workers.  In addition, the package will create or save more than 800,000 jobs statewide, and provide increases in Pell Grants for nearly 750,000 students.  A total of $55.6 million is allocated for educational spending in Marin and Sonoma counties.

While supportive of the legislation, Woolsey was disappointed that the overall spending level wasn’t higher, a sentiment echoed by several leading economists.  Nevertheless, she welcomed President Obama’s pledge that the legislation would be the first of several steps:

“This legislation makes important investments that will help our economy, but I remain concerned that it isn’t large enough, particularly when it comes to strengthening our human infrastructure,” Woolsey said.  “Increased investments in education, health care, and job retraining programs will lay the foundation for long-term growth.  These are the priorities that I look forward to working with President Obama to address in the coming months.”