Congressional Response...

Dear Educator:

Thank you for contacting me regarding H.R. 1, the American Economic Recovery and Reinvestment Act of 2009. I appreciate knowing your views on this issue.

It is essential that Congress implements strong measures that both reassure our financial markets and put Americans back to work. With my strong support, H.R. 1 passed the full House and I commend President Obama for signing it into law (Public Law No: 111-5) on February 17, 2009. This legislation includes $301.1 billion in tax cuts for individuals and businesses and is designed to create and save three to four million American jobs. The job creation package in P.L. 111-5 will rebuild America, making us more globally competitive and energy independent, provide tax cuts to 95 percent of American workers, and transform our economy for long-term growth.

I am especially proud that the American Economic Recovery and Reinvestment Act protects health care coverage for millions of Americans during this recession by providing an estimated $86.6 billion in additional matching funds for state Medicaid programs. With these funds, states like New York can maintain their Medicaid programs in the face of massive state budget shortfalls over the next two years. Additionally, the measure provides for a 65% subsidy for health insurance premiums under COBRA for up to nine months for workers (and their families) who have been involuntarily terminated. Without this coverage, approximately 7 million people would lose their health insurance coverage.

The American Economic Recovery and Reinvestment Act also includes $20 billion in tax incentives that will spur investment in renewable and alternative energy thereby decreasing our dependence on foreign oil and creating green jobs here in the U.S. Significant components of this plan include:

• Improving the efficiency for more than 1 million modest-income homes through weatherization and expanding the number of families who receive up to $5,000 so they can make energy-saving upgrades to their homes.
• Creating approximately 125,000 jobs by modernizing our nation's water systems.
• Putting people to work building, repairing and modernizing housing, reducing long term utility costs and helping those most affected by the housing crisis.
• Providing $500 million to train workers for green-collar jobs.

P.L. 111-5 also includes several personal and business tax breaks, tax provisions intended to assist state and local governments, and education-related tax incentives. The "Making Work Pay" tax credit provides up to $400 for individuals and up to $800 for families as a rebate on their payroll taxes so that Americans' hard work is truly rewarded. For businesses, the measure includes several provisions aimed at assisting business affected by the economy, providing $15 billion through FY 2019.

In these difficult financial times, we need bold leadership and decisive action. We cannot stand idly by as our country faces a devastating recession. Be assured that I will continue to fight in Congress for responsible legislation that helps struggling Americans and strengthens our economy.

Again, thank you for contacting me regarding this issue. If I can be of any further assistance, please do not hesitate to let me know.

Sincerely,

Eliot L. Engel

Member of Congress