February 13, 2009

Stimulus Bill Contains Nearly $7 billion for State

A preliminary analysis of the economic stimulus bill passed Friday by Congress indicates that Washington will receive nearly $4.7 billion in direct funding for new job creation and state assistance funding in addition to an estimated $2 billion that will go to accelerate environmental cleanup at the Hanford Reservation, according to Congressman Norm Dicks.

A total of $739 million will be spent on infrastructure improvements across the state, rebuilding bridges, repairing highways, investing in transit capital projects and building new drinking water and wastewater facilities, the congressman said.

The state will also receive an estimated $836 million in broadly-defined economic assistance funds that were inserted into the $787.2 billion stimulus bill to help states prevent tax increases, support public education and implement their own job creation strategies.  In addition, $2 billion was included for Washington in the bill to offset increasing expenditures for the Medicaid program, the joint federal/state program administered by the states to deliver medical care to needy individuals and families.  

Recognizing that the states are experiencing higher-than-normal unemployment during these difficult economic times, the stimulus bill also included a critical boost for unemployment insurance as well as funding for new employment service programs and special assistance to dislocated workers.  In addition, specific increases for the Head Start program for child development in low-income families ($10 million in Washington), Title I assistance for neglected or at-risk youth ($175 million in Washington), Special Education ($232 million in Washington) and Community Services Block Grants ($12 million in Washington) will all help offset the impact of the economic downturn in the state at this time. 

The legislation also contained a $6 billion boost for the Energy Department's Environmental Management account, about one-third of which will likely be spent to accelerate cleanup activities at the Hanford Nuclear Reservation, Rep. Dicks said.  He also noted that other funds contained in the bill --though not specifically directed to projects in the Northwest-- will likely boost the state's share of the stimulus bill.  He noted that there is a substantial allocation in the bill for reconstruction work on federal lands, including National Parks, that will likely have a pronounced impact in Washington. 

In addition, the bill authorized a sizeable increase in the Bonneville Power Administration's borrowing authority in order to implement power transmission improvements in the region, with specific direction to increase the access that BPA has to renewable resources including wind power generation. 

Rep. Dicks noted that “the recovery plan also includes tax relief for 95 percent of America’s working families which, combined with the direct investments in infrastructure improvements will offer an immediate jolt to our economy at this critical time.”

For a detailed summary of the entire stimulus bill, go to:  http://www.house.gov/list/press/wa06_dicks/morenews1/summarystimulus.shtml

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