850,000,000,000 tiny little pieces: Disability and asset building provisions in the 2009 stimulus package.


For those of you using screen readers, that number, the title of this piece, is eight hundred fifty billion dollars.  That is, according to some, the size of the 2009 stimulus package.  Other commentators suggest the amount exceeds one trillion.  Only in government can one hundred and fifty billion dollars be explained away as a rounding error!  Even more breathtaking, is the assumption by some, that the package is not large enough to provide a substantial impact to the economy: it should be larger?  At the time of this writing, the debate continues regarding final provisions to be included.  That said, at the end of the day, something will eventually be passed by both Houses, and President Obama will sign it.  The long term effects will likely be debated for decades, but fortune favors the bold, and the bold need information.  What follows is only a list.  A comprehensive writing of the entire stimulus package would likely take volumes, so here is a list of some of the more favorable disability and asset building opportunities likely provided in the 2009 stimulus plan.

In addition to $275 billion in tax cuts, the House Bill, entitled “The American Recovery and Reinvestment Act of 2009”, will provide $550 billion for a myriad of domestic programs to spur the economy, job growth, and help state and local governments cope with rising deficits.

A substantial amount of this new spending will be available to protect and possibly expand disability services.  Among the most critical increases to disability programs are:

Benefit programs:

• $87 billion for an increased federal Medicaid match (FMAP)
• A one -time $450 (individuals)/$630 (couples) payment to all SSI recipients ($4.2 billion total)
• $900 million to improve the Social Security Administration claims process and computerization upgrades which will hopefully quicken administration of claims for services
• $500 million for the Vocational Rehabilitation State Grant  

Education:

• $79 billion in state fiscal relief to prevent cutbacks to key services, including $39 billion to local school districts and public colleges and universities distributed through existing state and federal formulas, $15 billion to states as bonus grants as a reward for meeting key performance measures, and $25 billion to states for other high priority needs such as public safety and other critical services, which may include education.
• $15.6 billion to increase the Pell grant by $500
• A refundable college education credit of $2,500
• $6 billion for higher education modernization
• $13 billion for IDEA State Grants  
• $600 million for IDEA Early Intervention
• A new School Modernization and Repair Program ($14 billion)
• The Education Technology Program ($1 billion).

Housing-related funds:

• $6.5 billion for several low income housing initiatives
• A Public Housing Capital Fund ($5 billion)
• $16 billion to repair public housing and make key energy efficiency retrofits. This includes $2.5 billion for Energy Efficiency Housing Retrofits, a new program to upgrade HUD sponsored low-income housing to increase energy efficiency, including new insulation, windows, and furnaces.  Funds will be competitively awarded.
  

• $6 billion to weatherize modest-income homes including $10,000 subsidies for 100,000 pre-1976 manufactured home units
• 502 rural housing loans ($22 billion)
• Native American Housing Block grants ($500 million)
• HOME ($1.5 billion)
• Repeal of the repayment provision for the $7,500 homeownership credit.

Displaced worker and family assistance funding:

• $43 billion for increased unemployment benefits and job training  
• Make Work Pay tax credit of $500 for individuals and $1,000 for couples including self-employed individuals, and an expansion of the Earned Income Tax Credit.
• $39 billion to support those who lose their jobs by helping them to pay the cost of keeping their employer provided healthcare under COBRA and providing short-term options to be covered by Medicaid.
• $20 billion to increase the food stamp benefit by over 13% in order to help defray rising food costs.   
• Temporary Assistance for Needy Families: $2.5 billion for block grants to help states deal with the surge in families needing help during the recession and to prevent them from cutting work programs and services for abused and neglected children.  
• $6 billion to expand broadband internet access so businesses in rural and other underserved areas can link up to the global economy.

Other community investment funds include:  

• Community Development Fund ($1 billion)
• Community Stabilization competitive grant process for nonprofits and local governments ($3.4 billion),
• Community Services Block Grant ($1 billion)
• Americorps ($160 million)
• Economic Development Administration ($250 million)
• Rural community facilities direct loans ($1.1 billion) and grants ($137 million)
• Workforce Investment Act ($4 billion including Summer Jobs for Youth ($1.2 billion) and YouthBuild) ($50 billion)
• Rural business and industry guaranteed loans ($2 billion)
• $1 billion for work necessary to ensure a successful 2010 census, including $150 million for expanded communications and outreach programs to minimize the undercounting of minority groups.  

According to the bill’s EXECUTIVE SUMMARY:

• A historic level of transparency, oversight, and accountability will help guarantee taxpayer dollars are spent wisely and Americans can see results for their investment.  

• In many instances funds are distributed through existing formulas to programs with proven track records and accountability measures already in place.

• How funds are spent, all announcements of contract and grant competitions and awards, and formula grant allocations must be posted on a special website created by the President.  Program managers will also be listed so the public knows who to hold accountable.

• Public notification of funding must include a description of the investment funded, the purpose, the total cost and why the activity should be funded with recovery dollars.  Governors, mayors or others making funding decisions must personally certify that the investment has been fully vetted and is an appropriate use of taxpayer dollars.  This will also be placed on the recovery website.

• A Recovery Act Accountability and Transparency Board will be created to review management of recovery dollars and provide early warning of problems. The seven member board includes Inspectors General and Deputy Cabinet secretaries.
  

• The Government Accountability Office and the Inspectors General are provided additional funding and access for special review of recovery funding.

Want to get involved?

Governor Tim Kaine has agreed to record a video outlining the recovery plan and answer questions about what it means for your community. You can submit your questions online at http://my.barackobama.com/recovery.

According to the Administration, "our ability to come together as a nation in difficult times has never been more important."  Let's make sure the voice for the disability community is well represented!



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Information provided by the American Recovery and Reinvestment Act of 2009, Corporation For Enterprise Development (CFED), and the Consortium for Citizens with Disabilities (CCD).