Package includes Rep. McGovern’s transit benefit provision

U.S. Rep. Jim McGovern today hailed passage in the House of Representatives of the American Recovery and Reinvestment Act of 2009.

“America is facing the worst economic crisis since the Great Depression,” Rep. McGovern said. “We need to act quickly and boldly to put people back to work and restore confidence. It’s estimated that this package will save or create 7,600 jobs in the Third Congressional District alone. In addition, it will provide over $180 million for badly-needed water infrastructure projects in Massachusetts, in addition to other road, bridge and transit projects. It will cut taxes for 95% of workers. And it will make significant investments in our schools, our health care, and our energy independence.”

The bill also provides relief to those hardest hit by the current economic downturn, including an increase in food and nutrition benefits, unemployment benefits, worker training and Trade Adjustment assistance.

In addition, Rep. McGovern commended House and Senate leaders for including changes to the tax code to provide parity for mass transit benefits, an issue Rep. McGovern has long championed.

Current law provides a tax-free fringe benefit employers can provide to employees for transit and parking. Those benefits are set at different dollar amounts; currently there is more incentive for employers to provide parking benefits than to provide mass transit benefits. The McGovern provision included in the stimulus bill sets both the parking and transit benefits at $230 per month for 2009 and indexes them equally for 2010.

“It makes no sense to encourage employers to offer parking benefits instead of mass transit benefits,” Rep. McGovern said. “The inclusion of this provision is great news for transit commuters and great news for our environment. I want to thank Sen. Kerry for all of his efforts in the Senate on this issue.”