Focus On Recovery

AMERICAN RECOVERY AND REINVESTMENT ACT: WHAT IT MEANS FOR DELAWARE

Our country is facing its most significant economic challenge since the Great Depression. The nation lost more than 600,000 jobs in each of the first three months this year. The American Recovery and Reinvestment Act of 2009, which President Obama signed into law on February 17, is an economic package that delivers what we need: jobs and tax relief. There is no higher priority than stopping more layoffs and getting our citizens back to work. According to the White House Council of Economic Advisers, these investments in our economy will create or save an estimated 11,000 jobs in Delaware over the next two years.

Money from the American Recovery and Reinvestment Act (ARRA) has started flowing into Delaware. It takes several forms: funding flowing directly to the state, local education and law enforcement agencies, or other organizations under automatic formulae; competitive grant funding that is distributed by federal agencies directly to meritorious projects in Delaware; and tax relief for Delaware families and businesses.

For an updated list of direct federal grants awarded to Delaware, click here .

Safety Net Assistance for Delawareans:

An estimated $300 million will be available to help Delaware avoid cutting recipients from the Medicaid program and to maintain services. More than $60 million more will help meet demands for assistance through such programs as food stamps, emergency food and shelter, child care services, senior meals, and community services block grants.

Tax Relief for Delaware Families and Businesses:

Up to $400 for workers ($800 for married couples) in the new Making Work Pay Tax Credit, available to 300,000 Delaware workers.

$250 to Social Security beneficiaries and disabled veterans.

$2,500 for 8,000 additional families in Delaware to make college more affordable.

Increase to $8,000 the first-time homebuyer tax credit.

Extended bonus depreciation and small business expensing through 2009.

Job-Creating Investments Coming to Delaware (by formula):

Energy Assistance: $24.2 million for the State Energy Program and $13.7 million for Weatherization Assistance - announced on March 23.

Highway and Transit Funding: $121.8 and $17.6 million for highway and transit funding, respectively. This covers surface transportation, rail, port and mass transit projects.

Clean Water/Safe Drinking Water Revolving Funds: Nearly $40 million to address the backlogs in drinking water and clean water infrastructure needs.

Housing Assistance: $7.1 million to the Public Housing Capital Fund to help local public agencies address a backlog of capital needs; $6.6 million in HOME funding to enable local governments to acquire, construct and rehabilitate affordable housing; and $2.9 million to the Homelessness Prevention Fund to provide short- and medium- term rental assistance.

Education and Training: Important investments in Delaware's schools and colleges that will not only prepare America's workforce for the future, including helping students to compete better against foreign competition, but will also preserve jobs throughout the state. Funding includes:

• More than $130 million through the State Fiscal Stabilization Fund to local school districts and public colleges and universities.
• $32.7 million for Special Education Part B State Grants
• $3.1 million to purchase up-to-date computers and software for classrooms
• $39.3 million for Title I Education for the Disadvantaged
• $1.1 million to provide customized re-employment services
• $1.8 million in Dislocated Workers State Grants
• $1.2 million for the Department of Labor's Adult State Grants
• $2.9 million for the Department of Labor's Youth State Grants
• $1.6 million for Vocational Rehabilitation

Law Enforcement Assistance: More than $10 million to support law enforcement efforts; $400,000 to prevent Internet crimes against children; nearly $1 million for crime victim compensation and assistance; and $1 million to combat violence against women.