Leahy Releases His Stimulus Package Priorities
As Drafting Process Begins To Take Shape
. . . Letter To Obama Shows
Common Ground On Several Key Issues
(FRIDAY, Dec. 19) -- U.S. Senator Patrick Leahy
(D-Vt.) Friday released his suggestions to President-elect Barack Obama
for elements of a major stimulus package to help jump-start the ailing
economy.
Leahy said he suggested economic stimulus priorities
that he believes can go farthest in reawakening the U.S. economy,
creating jobs here at home and assisting states like Vermont that are
struggling with slackening revenue and difficult budget cuts.
Leahy’s suggestions come as the process of writing a
stimulus package, with investments of several hundred million dollars,
began to take shape. President-elect Obama’s transition aides
began discussing his ideas on Capitol Hill on Thursday, and Senate
leaders Thursday announced that the Senate Appropriations Committee will
have a leading role in drafting the Senate’s version of the stimulus
bill. Leahy is a senior member of the committee and a member of
its “college of cardinals” – chairs of the panel’s subcommittees, which
have the standing of full committees in the Senate. Leahy also
will be number four in seniority in the new Senate that will begin its
session in January.
Some of Obama’s and Leahy’s ideas already are closely
matched – for instance, more resources for hunger relief through the
food stamp and school lunch programs, and their mutual support of
infrastructure projects and “green economy” investments that they
believe would have lasting economic benefits, as well as short-term
employment and stimulus effects.
In crafting his suggestions, Leahy sought input from
leaders in the Vermont Legislature and from Governor Jim Douglas.
“America needs bold policy initiatives to turn around
our economy and keep us at the forefront of the global marketplace,”
said Leahy. “We have spent the last five years building schools,
hospitals, roads, and bridges in Iraq. It is time for the United
States to start investing in need that have been shortchanged here at
home.”
Leahy continued, “From transportation investments to
broadband deployment to Medicaid reimbursements to small business
assistance, I have focused on variety of timely, temporary and targeted
stimulus measures that would strengthen Vermont’s economy by boosting
consumer demand, promoting economic growth and creating jobs.”
The text of Leahy’s letter to Obama is available below
or
here as a PDF file.
# # # # #
December 18, 2008
President-elect Barack Obama
Presidential Transition Project
Washington, DC 20270
Dear President-elect Obama:
As you prepare to take office, the American people
have welcomed the way you have begun to outline the many challenges our
country faces as we continue to respond to the greatest economic and
financial crisis since the Great Depression. As Congress begins to
work with you in shaping an economic stimulus bill to jump-start the
economy and help hardworking Americans who are struggling the most, I
would like to share with you my priorities for the stimulus bill --
policies and actions that are among those that can go farthest in
reawakening the economy, creating jobs here at home, and assisting our
struggling states.
Transportation Infrastructure
Many states, facing
deepening budget deficits, have been forced to make drastic cuts to
their transportation budgets. Their inability to repair roads and
bridges, support public transit during a time of record demand, and
upgrade rail lines further strains commerce, industry and general
economic activity. As you have observed, we can improve our
transportation network and put people back to work by investing in our
transportation infrastructure and expanding our public transit systems
through additional funding to the Federal Highway Administration, the
Federal Transit Administration and the Federal Railroad Administration’s
Rail Line Relocation and Improvement Program.
The federal government also could provide additional fiscal relief to
the states by temporarily suspending the non-federal matching
requirement for transportation projects. On December 10, the
Vermont delegation introduced legislation (S.3728 and H.R.7340) to waive
the non-federal match requirements for federal transportation funding
under the Safe, Accountable, Flexible and Efficient Transportation
Equity Act, a Legacy for our Users (SAFETEA-LU). Waiving the
non-federal match requirements for all highway, transit, and rail
projects contained in SAFETEA-LU would allow cash-strapped states to
turn shovels immediately on high-priority transportation projects -- at
no additional cost to the federal government. Since state and
local transportation officials have ready-to-go projects that simply
cannot move forward without untying the strings of the required match,
our legislation would waive the non-federal matching requirements of
SAFETEA-LU through September 30, 2009.
Broadband Deployment
Even well into the onset of the Digital Age, the
United States still faces a deep digital divide in broadband deployment,
particularly in rural areas. This is due in large part to the
failure of broadband providers to offer services to rural areas and to
the lack of a strategic, national plan to make broadband access a
universal service. Like you, I believe expanding broadband access
to rural America is an essential part of any economic stimulus plan.
Though the federal government has begun to make earnest investments in
broadband expansion, primarily through programs at USDA Rural
Development and modest investments at the Economic Development
Administration (EDA), we must exponentially expand these programs.
USDA Rural Development’s Community Connect program and Broadband Loan
and Loan Guarantee program could both be used to drastically improve
broadband availability if we provided program offices and USDA Rural
Development state offices with additional funds and more flexibility.
For instance, a $100 million fiber-to-the-home project in Vermont that
could create hundreds of construction jobs, more than 100 immediate
operations center jobs, and thousands of new business opportunities for
Vermonters could start connecting customers this summer through the use
of a $50 million USDA Rural Development broadband loan guarantee – an
authorized program that has yet to be implemented. Additional
state and municipal broadband deployment projects in Vermont that need
construction funding would be able to start or continue construction
this spring if we provided a one-time allocation to EDA with a focus on
municipal and non-profit broadband expansion programs.
Justice Assistance
Experience shows that crime tends to escalate in a
worsening economy. As we work to protect jobs and spur our
worsening economy, we must help our cities, towns, and rural communities
combat the drug and crime problems that threaten public safety and the
well-being of many who have lost hope, particularly our young people.
Effective state and local law enforcement is vital to our efforts to
combat the scourge of drugs and crime, and the federal government in the
past has been an effective partner. Unfortunately, for the last
eight years, state and local law enforcement agencies throughout the
country have been stretched thin as they have shouldered both
traditional crime-fighting duties and new homeland security demands.
They have faced continuous cuts in federal funding during the Bush
years, and time and time again our state and local law enforcement
officers have been unable to fill vacancies and to get the equipment
they need.
I strongly support restoring the Community Oriented
Policing Services (COPS) and Edward Byrne Justice Assistance grant
programs that offer practical support to local law enforcement agencies.
These programs enable local communities to substantially increase the
number of law enforcement officers, provide training and assistance for
local prevention programs and law enforcement, and encourage innovative
crime prevention programs and new law enforcement technologies.
These proven programs should be reauthorized, supported and fully
funded.
I also support reauthorizing and funding the
Crime-Free Rural States grant program. Drug-related crime is not
just a big-city issue. It is a growing problem in rural
communities across the country. We need to support practical
programs that provide vital resources to some of the nation’s most
vulnerable, cash-strapped communities to address crime in their
neighborhoods.
Any effective approach to crime must include a
significant emphasis on prevention and treatment, particularly for young
people. This is vitally needed so that our children can be kept
safe, on a productive path, and out of the criminal justice system, and
so that if they do stray, they can be given the opportunity to turn away
from crime and become productive members of the community.
Reauthorizing and fully funding the important programs in the Juvenile
Justice and Delinquency Prevention Act should be an important part of
this effort.
The financial crisis also has highlighted the need for
effective enforcement and accountability in connection with mortgage
fraud, financial fraud and public corruption. I strongly support
increasing resources for thorough and effective investigation and
prosecution of fraud and corruption, as well as closing loopholes in the
law to allow the government to hold fully accountable those who would
defraud the public and abuse their trust.
Nutrition
With the dramatic rise in
both food prices and unemployment, the current economy severely
undermines food security in families across the country. When
people lose their jobs and income or when wages slump, they show up at
food stamp offices and also at food shelves. These are people who
are running out of food, reducing the quality of food their family eats,
feeding their children unbalanced diets, and skipping meals altogether
so they can afford to feed their children.
A proven way to stimulate
the economy for those in need is through the food stamp program
(Supplemental Nutrition Assistance Program). I strongly urge
including a temporary benefit boost for food stamps. While I
appreciate the 10 percent increase contained in the recent Senate
stimulus proposal, I would encourage an even higher level in order to
properly address the rising food insecurity for millions of Americans.
I also believe that a
temporary increase in the federal reimbursement for school meals is
needed during this economic crisis. We have more students turning
to free and reduced-priced lunches at a time when many school districts
are being forced to raise prices for school meals due to escalating food
costs. Addressing the recent dramatic increase in food prices
since the last inflation index determination would help close the budget
gaps that our schools are facing.
Finally, with our food
banks and pantries seeing record demand, I would support an additional
$50 million for our nation’s food banks and $30 million for the
Commodity Supplemental Food program. We
must to do more to feed those in need, and the Agriculture Department
needs to be an integral part of that partnership.
Small Business Assistance
The United States should provide our nation’s
struggling small businesses and homeowners with increased access to
capital through monetary awards, loans, and the allocation of tax
credits. Several federal programs already exist to help promote
access to capital and local economic growth in urban and rural
low-income communities across the nation. I strongly support
increased funding for programs that participate in these activities,
including the Small Business Administration’s loan programs, the
Commerce Department’s Manufacturing Extension Partnership (MEP) Program,
USDA Rural Development, and the Treasury Department’s Community
Development Financial Institutions (CDFI) Fund.
Green Jobs and Energy Efficiency
The United States should make sound and practical energy investments
that support new job creation, boost our economy, and secure America’s
place as a leader in the emerging green economy. Helping our
companies retool and retrain workers to produce clean energy and energy
efficient components or end products will result in residential and
commercial energy savings, industry revenue, and new green jobs
throughout the country. I strongly support programs such as:
-
Clean Tech Manufacturing Incentives to help
manufacturing plants retool or retrain workers to produce clean
energy and energy efficiency components or end products.
-
Energy Efficiency and Conservation Block
Grants for large scale public-private partnerships to encourage
public-private large-scale, multi-building retrofit projects for
residential homes and businesses.
-
A Green Jobs Act to support on-the-ground
apprenticeship and job training programs to meet growing demand for
green construction professionals skilled in energy efficiency and
renewable energy installations.
-
A Clean Energy Service Corps to engage rural
and urban young adults, students, and seniors in a combined service,
training, and job creation effort to build the green economy.
-
Smart Grid Technology to
optimize current electricity transmission and open new markets for
alternative energy production.
Community Redevelopment and Affordable Housing
The Community Development Block Grant (CDBG) program
has sustained a dramatic reduction in funding since 2001. Despite
the declining federal resources, the program has continued to help
communities across the country spur economic development and create
much-needed affordable housing opportunities. Since each dollar of
public investment leverages private and non-profit funds, and
municipalities and states have proven their effectiveness in disbursing
these construction funds quickly and wisely, I suggest restoring the
CDBG funding allocation to pre-2001 levels. Further, many states
and entitlement communities have been unable to fund Fiscal Year 2008
competitive applications that are ready for construction due to budget
reductions. I also would recommend the allocation of one-time
"backlog reduction" assistance to state and community CDBG programs.
Additional resources for the Department of Housing and Urban
Development’s HOME program also would quickly create construction jobs
and affordable housing opportunities throughout the United States.
My home state of Vermont, for instance, quickly puts its HOME allocation
into projects, and I understand Vermont and other states have
shovel-ready HOME-eligible projects prepared for spring and summer
construction.
Perhaps the most significant
federal investment in America’s communities could come from the funding
of the National Housing Trust Fund. By investing $10 billion into
the nation’s newest community and housing development program, America
could provide 100,000 homes for struggling Americans.
Medicaid
In Vermont, the Medicaid shortfall for next year is
estimated to be between $40 and $60 million. In a difficult
economy where more and more Americans are losing their jobs and their
employer-sponsored health coverage, coverage through public programs
like Medicaid is more important than ever. Vermont's governor has
laid out a number of options to reach our state’s budget neutrality
requirements including steps to reduce the Medicaid eligibility.
Thus, I strongly support a temporary increase to the federal share of
the Medicaid program. An across-the-board increase to the federal
medical assistance percentage (FMAP), rather than a tiered approach, is
essential to ensuring continuing health coverage to some of the most
vulnerable Americans.
Water Infrastructure
For eight years we have failed to make adequate
investments in clean and safe drinking water. EPA estimates that
$202 billion will be needed to keep pace with aging sewer infrastructure
needs over the next 20 years, which would require an average commitment
of $10 billion per year. I strongly support a significant
injection of funds into the Environmental Protection Agency’s Clean
Water and Drinking Water State Revolving Funds, which provide funding to
states for low-cost loans to make local sewer projects affordable.
For example, it is estimated that this $2.5 billion investment would
create at least 72,000 jobs and generate an additional $1.1 billion in
economic benefits for communities.
School Construction
One of the most significant parts of federal education
policy has been to support states as they make local determinations
about how to educate our students. Over the past few years, No
Child Left Behind has kept level or in some cases even cut funding to
all school improvement programs, leaving schools without the capacity to
make essential repairs or modernize aging buildings. In Vermont,
schools have been unable to address costly improvements to 50- or
60-year-old buildings due to skyrocketing budgets caused by the high
cost of fuel and inefficient building infrastructure.
We can improve the functioning of our schools and
address the budget-draining energy costs by offering grants for
modernization, renovation, or repair of public schools. Requiring
that grant recipients meet LEED green building rating standards, or
Energy Star Standards, would help states create energy efficient school
buildings that will in turn produce savings down the road. I
strongly support funding such a grant program that will help ensure that
our public schools are safe, healthy, high-performing, and
technologically up to date.
EB-5 Regional Center Pilot Program Extension
The EB-5 Regional Center program was created in 1992
as a pilot program intended to encourage foreign investment and job
creation in rural and economically distressed areas in the United
States. This program has proven its worth. In 2007, the
program generated approximately $500 million of direct investment into
American communities, resulting in the creation of 10,000 American jobs.
In 2008, USCIS estimates that the program will have doubled in
productivity resulting in $1 billion of direct investment with the
creation of 20,000 jobs. All indications are that these figures
will increase. Currently there are 24 active Regional Centers
involved in a diverse range of projects and USCIS reports that it has an
additional 24 pending applications for new Regional Centers. The
dramatic increase in the program’s popularity is a testament to its
success among both immigrant investors and American entrepreneurs.
The EB-5 Regional Center program provides an
additional source of economic development at the community level that is
not dependent upon the credit markets, and which can be a factor in
building economic health from the ground up. This program spurs
innovation and allows entrepreneurs in the private sector to promote
American goodwill and investment opportunities in the United States.
I believe it would be a mistake not to take advantage of a program for
which the infrastructure and processes are well-established, and where
the private sector community of stakeholders is well-organized and
highly motivated. Moreover, the Regional Center program provides
capital investment and American job creation at no cost to taxpayers.
If the federal government makes this proven program permanent, I am
confident that it will play an important role in our overall economic
recovery.
Health Information Technology
You have expressed a desire to invest in a
transformation of our nation’s health care system through health
information technology. I agree that this investment will have
both short and long-range benefits to the health care of all Americans.
Long-term cost cutting measures, such as the use of electronic medical
records, can help stimulate the health care economy while providing
important groundwork for a larger health care proposal in the near
future. Federal funding to help states implement health
information technology improvements will encourage needed modernization
to health records and provide states the means to promote innovations in
this area. Vermont has made important strides in advancing health
information technology throughout the state to improve patient care and
control costs. Vermont’s program could be expanded quickly with
additional federal funding, creating more jobs, and further improving
patient outcomes.
# # # # #
I believe that these timely, temporary, and targeted
stimulus measures could strengthen our economy by boosting consumer
demand, promoting economic growth, and creating jobs. Please let
me know if you have any questions about these proposals. I look
forward to continuing our work with you to turn around our economy and
keep America at the forefront of the global marketplace.
Sincerely,
PATRICK LEAHY
United States Senator
