Government Relations Update - Economic Stimulus
As American Recovery and Reinvestment Act (Recovery Act) dollars make their way from Washington to state capitals, federal lawmakers are determined to ensure that those funds are used to spur job creation and employ those currently out of work. Congressional oversight of stimulus fund use continued this week as the House Transportation and Infrastructure committee conducted the first of a series of hearings devoted to investigating how those dollars are spent and their impact on job creation on April 29. While members implored those testifying to rush the funds to their destination for the purpose of creating as many jobs as quickly as possible, some witnesses suggested that reporting problems, lack of sufficient personnel, and funding issues have caused some, if minor, delays in the obligation of funds.
Transportation Secretary Ray LaHood testified that of the $48.1 billion the Recovery Act provided to the Department of Transportation, $44.8 billion has already been made available to state and local agencies. Despite the Secretary's warning that the true effects of the stimulus may not be felt for months, he assured the panel that "[the transportation] part of the recovery...will help jump start the economy." Providing the committee members with even more good news, Secretary LaHood stated that many projects are coming in under-budget, enabling the stimulus funds to stretch even further and create more jobs. Despite this news and the fact that vast amount of funds have been made available since the legislation was enacted ten weeks ago, committee members expressed concern that projects are still taking too long to begin and that the funds may be distributed unfairly by state governments. The Transportation Department's Inspector General Calvin Scovel suggested that the department may not have sufficient personnel to spend funds as quickly as Congress would like.
Tracking the number of jobs created as a result of the Recovery Act has proved cumbersome due to the lack of a working definition of what constitutes a stimulus-created job. Congressman Peter DeFazio (D-OR) praised TriMet, Portland's transit agency, for having spent its stimulus funds on 30 separate projects aimed at creating and stimulating local jobs. Additionally, TriMet is utilizing new technology that tracks the number of jobs created as a result of the stimulus funds that Rep. DeFazio suggested could be used as a national model.
The committee did not restrict itself to hearing only from transportation officials and received testimony from other agencies including the General Services Administration (GSA). Paul Prouty, Acting Administrator of the GSA, testified that the Energy Independence Act and other laws require his agency to reduce its energy consumption by 30% by 2015, reduce fossil fuel-generated energy consumption to 100% in 2030, and make further "green" investments in government building. Though Recovery Act funds will accelerate progress in these areas, Administrator Prouty told the committee that they will not be sufficient to meet these federal requirements.
The Transportation and Infrastructure committee anticipates conducting regular oversight hearings with the next such meeting to be held next month.
Individual agencies continue to report on their Recovery Act actions. More information about their activities can be found below.
On April 29, Secretary of Commerce Gary Locke announced that the DOC National Telecommunications and Information Administration will begin a new outreach campaign to educate consumers about the June 12 transition to digital television. In May, DOC will send mobile assistance centers to more than 20 cities across the country, where staff will help consumers apply for coupons towards the purchase of TV converter boxes and learn how to install the boxes. PSAs will be placed in buses, transit shelters, and benches; and Spanish and English radio ads will run targeting unprepared communities. These activities will be funded with the $650 million supplied to Commerce for digital television transition by the Recovery Act. To date, the Department has obligated roughly for $300 million for the analog-to-digital television program.
Thus far, the DoD has obligated $109.4 million in Recovery Act funding and a total of $63.1 million during the week ending April 24, 2009, reflecting over 220 contracts to non-federal vendors.
This week, the Department of the Navy obligated $4.1 million, which includes the following contracts:
- $2.3 million to the Naval Facilities Engineering Command for award contract support on multiple projects.
- $1.1 million construction project to replace underground steam lines at Naval Surface Warfare Center, Carderock, MD.
- $700,000 for Research, Development, Test and Evaluation (RDT&E) for Engine Efficiency Improvements.
Furthermore, the Air Force awarded 175 Facilities Sustainment, Restoration and Modernization (FSRM) contracts worth $57.7 million this week, including the following:
- $4.2 million for airfield paving and repair of water mains at Barksdale, AFB, Louisiana.
- $3.9 million for painting and repairs at Tyndall, AFB, Florida.
- $1.7 million to replace water mains and building improvements at Sheppard, AFB, Texas.
- Minor projects at Dover AFB, Delaware; Charleston AFB, South Carolina; Randolph AFB, Texas; Vandenberg, AFB, California; McDill AFB, Florida; Langley AFB, Virgina; Grand Forks AFB, North Dakota; and Warner Robbins AFB, Georgia.
The DoD is planning to release a list of remaining facility improvement projects that are estimated at $835 million. Additionally, the Navy is planning to award multiple contracts for $43.4 million on additional FSRM projects.
This week, the Department of Education continues to push out State Stabilization Funds and made the following funds available to states on April 28:
- $130 million for Maine
- $321 million for Utah
- $382 million for Oregon
- $547 million for Minnesota
- $321 million for Mississippi
On April 29, Secretary of Energy Steven Chu announced the disbursement of $93 million for wind energy projects. These funds will advance wind technology so that it can reliably supply a substantial portion of the United States' electricity Secretary Chu said. The money will be distributed as follows:
- $45 million for wind turbine drivetrain research and development
- $14 million for development of lighter weight, advanced materials for turbine blades, towers, and other equipment
- $24 million for the development of up to three consortia between universities and industry to focus on critical wind energy challenges
- $10 million for the National Wind Technology Center
Department of Health Human Services (HHS)
HHS has reports the following with regard to its use of Recovery Act funds:
- Cumulative Recovery Act Medicaid FMAP State draw downs total $13.9B through Friday April 24.
- The National Institutes of Health (NIH) obligated approximately $70 million of Recovery Act funds on Wednesday, April 22.
- The Office of Management and Budget has completed a review of several HHS spending plans, and once necessary the documents are prepared, funds will be released or funding opportunities will be made public.
Department of the Interior (DOI)
Secretary of the Interior Ken Salazar announced the release of $750 million of Recovery Act funds to the National Park Service this past week. The funds will be used to upgrade and maintain facilities at national parks around the country. A complete list of projects that will be funded is available here.
On April 29, Attorney General Eric Holder announced that more than $424 million of the $4 billion provided under the Recovery Act for the Edward Byrne Memorial Justice Assistance Grant (JAG) Program funds will go to 20 states, territories, and the District of Columbia. Although a minimum allocation is provided to each state and territory, the JAG allocation procedure is based on a formula of population and violent crime statistics. Click here to view state-by-state recipient plans.
Currently, DOJ is also planning on announcing Local Recovery Act JAG awards at a later date—which receive 40 percent of JAG allocations—after the May 18 submission deadline.
Recovery Act program plans developed by the Employment and Training Administration (ETA) are currently being reviewed and will be posted on Recovery.gov. Additionally, ETA anticipates the release of several Training and Employment Guidance Letters regarding:
- Use of Health Coverage Tax Credit Funds made available by the Recovery Act
- Performance Accountability for the Recovery Act
- Recovery Act Financial Reporting Requirements
- Recipient Reporting Requirements under Section 1512 of the Recovery Act
- National GPRA Performance Goals adjusted for variations in the unemployment rate.
Department of Transportation (DOT)
As of Friday, April 24, FTA has awarded 5 grants for a total obligation of $48.6 million in Recovery Act funds and the FHWA has authorized 2,392 projects in 50 states and territories totaling $7.65 billion in obligations.
Additionally, the Federal Railroad Administration is planning a series of regional outreach meetings to solicit stakeholder and public input into the development of guidance for the high-speed and intercity passenger rail grant programs.
The Department of Transportation has developed Maps of Recovery Act projects showing funds for projects by State. Those maps can be accessed at:
U.S.Army Corps of Engineers (USACE)
USACE has posted the list of Civil Works projects the Recovery Act funded through the $4.6 billion appropriated to its Civil Works program. The funding is being distributed through the following program accounts: Operation and Maintenance, Construction, Mississippi River and Tributaries, Formerly Utilized Sites Remedial Action Program and Investigations.
Environmental Protection Agency (EPA)
On April 29, EPA Administrator Lisa Jackson testified before the House Transportation and Infrastructure committee on implementation of the Recovery Act. Administrator Jackson told the committee that the EPA is working hard to quickly distribute funds in a manner that will protect human and environmental health and create jobs. Administrator Jackson's testimony is available for review here.
General Services Administration (GSA)
GSA's work to "green" the federal government continues as the agency is taking actions to establish an Office of Federal High-Performance Green Buildings. Additionally, GSA is also working with the Environmental Protection Agency to quantify improvements in fuel economy and emission reductions while replacing the federal vehicle fleet.
State Recovery Act Plans
Individual states continue to take their own steps to implement the Recovery Act. For more information on state efforts, please visit the directory of state recovery websites.
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