To:
Washington Representatives and
State Federal Contacts
Re:
Analysis of American Recovery
and Reinvestment Act
Date:
February 13, 2009
EDUCATION AND WORKFORCE
State Fiscal Stabilization Fund -- $53.6
Billion Total
$53.6
billion in grants to governors for state fiscal relief to prevent cuts to key
services, including $39.5 billion to local schools and higher education
institutions distributed through existing state and federal formulas, $5
billion as incentive grants to states that make key performance measures, and
$8.8 billion to states for public safety and other government services, which
may include education and education modernization, repair, and renovation.
·
Assurances and Requirements for Funds:
1.
Maintenance of
Effort: A state must maintain state
support on K-12 education at least at the level of fiscal year 2006 in 2009,
2010, and 2011; and a state must maintain state spending on higher education at
least at the level for fiscal year 2006 in 2009, 2010 and 2011 (excluding
capital projects, research and development, and tuition and fees paid by
students).
2.
Teacher Effectiveness: A
state must take action to comply with Section 1111(b)(8)(C) of ESEA to ensure
to address inequities between the distribution of teachers in high-and
low-poverty schools, and to ensure that low-income and minority children are
not taught at a higher rates than other children by inexperienced, unqualified,
and out-of-field teachers.
3.
P-16 Data: Establish a longitudinal data system that
includes the elements as described in Section 6401(e)(2)(D) of the America
COMPETES Act.
4.
Standards and Assessments: Enhance academic assessments to comply with
several ESEA provisions related to the inclusion of students with disabilities,
limited English proficient students, and the provision of accommodations for
those students to participate in assessments. And, take steps to improve state
academic standards and student academic achievement standards.
5.
Corrective Action: Ensure compliance with the corrective action
requirements in Section 1116(a)(7)(C)(iv) and 1116(a)(8)(B).
·
State Reports: Governors receiving state stabilization fund
shall submit a report to the Secretary describing use of funds, how the funds
distributed funds, the number of jobs saved or created, tax increases averted,
progress to reduce inequities in the distribution of highly qualified teachers,
progress to implement a state longitudinal data system, progress to develop a
valid and reliable assessment for limited English proficient students and
students with disabilities, the avoidance of higher education tuition and fees
increases, and the extent to which higher education institutions of maintained, increased, or decreased
enrollment of in-state students, and a description of each modernization,
renovation, and repair project funded, and the project costs.
Grants to
Governors for Education -- $39.5 billion
A governor must use 81.8% of the state’s allocation to
support elementary, secondary, and postsecondary education, and as applicable,
early childhood education programs and services. Elementary and secondary
education is defined by the state.
·
The governor shall first use the funds to: (1)
provide funds to K-12 education to (a)
restore, in FY09, FY10, and FY11, the level of state support through the
state funding formulae to the greater of FY08 or FY09; (b) and where
applicable, to allow existing state formula increases to support K-12 in FY2010
and FY11 to be implemented and allow
funding to phase in State equity and adequacy adjustments, if such increases
were enacted prior to October 1, 2008; and
(2) to provide public higher
education institutions in FY09, FY10, and FY11 the amount of funds needed to
restore state support (excluding
tuition and fees paid by students) to the greater of FY08 or FY09.
o
Shortfall: If the funds are insufficient to restore
spending levels, a governor shall allocate funds between K-12 and higher
education relative to the state shortfall.
o
Excess: Any carrying out the above clauses, the
Governor shall allocate funds to local education agencies relative to their
Title I shares.
·
Local education agencies
must use the funds in accordance with ESEA, IDEA, Perkins, or for
modernization, renovation, or repair of school facilities, including recognized
green building rating systems.
o
K-12 school repair, modernization,
or renovation must be consistent with state law.
o
LEAs may not use funds
for payment of maintenance costs, stadiums or other athletic facilities,
purchase or upgrade of vehicles, or improvement of stand-alone facilities whose
primary purpose is not education of children.
·
Public higher education
institutions shall use funds to mitigate the need to raise tuition and fees for
in-State students, or for modernization, renovation, or repair of higher
education facilities that are primarily used for instruction, research, or
student housing, including recognized green building rating systems.
o
HEA may not use funds
for payment of maintenance systems, equipment, or facilities; modernization of
athletic facilities; or facilities used for sectarian instruction or religious
worship; or in which a substantial portion of the functions are subsumed in
religious mission.
Grants to
Governors for “Other Government Services” -- $8.8 billion
A
governor must use 18.2% of the state’s allocation for public safety and other
government services, which may include K-12 and HEA modernization, renovation,
repair, including recognized green building rating systems.
·
Funds may be used for
any institution of higher education and a Governor may not consider the type of
institution.
·
K-12 school repair,
modernization, or renovation must be consistent with state law.
State
Incentive Fund -- $5 billion
$5 billion is reserved for a new fund for the
Secretary of Education to award incentive funds to those states that apply for funds.
·
The Secretary shall
decide which states receive grants and how much based on the following:
o
Funds are available to
states that make significant progress on the above assurances, and the
following items: state strategies to help struggling students meet state
academic proficiency targets, and achievement and high school graduation rates
as defined by ESEA and the new Title I regulations.
o
Each state must describe
how funding would be prioritized for high-need schools and how the state will
evaluate if progress is made in closing the achievement gap.
o
Each state receiving an
incentive fund award shall use at least 50% of award subgrants to local
education agencies, relative to Title I share.
Innovation
Fund -- $650 million
Funds are reserved for the Secretary to recognize
local education agencies or schools that make significant gains to close the
achievement gap. States are not eligible for these awards.
K-12
Education
Grants
to states and local education agencies to support K-12 education will be
provided through several existing federal-state programs, including:
Higher
Education
Preschool
to College (P-16) Alignment
Rehabilitation
Services and Assistance
$540
million for formula state grants for state vocational rehabilitation services
to serve people with disabilities. $140 million for state grants for
independent living, centers for independent living, and services for older
individuals who are blind programs.
Education
Infrastructure
Workforce Employment and Training
$3.95 billion for formula states to provide for employment and training programs under the Workforce Investment Act (WIA) of 1998, including:
·
Dislocated Worker Program: $1.25 billion for training and reemployment services
for dislocated workers.
·
Adult Program: $500 million to serve eligible low income adults.
·
Youth Program: $1.2 billion for youth activities including summer
jobs for youth. The eligibility age for
youth recovery funds is extended to age 24.
The
Secretary of Labor will receive discretionary funding for competitive grants to
states in the three following programs:
·
High Growth and Emerging
Industry Sectors: $750 million is provided for worker training and job placement in high growth and emerging
industry sectors. Of that amount, $500
million is reserved to prepare workers for efficiency and renewable energy
careers.
·
Dislocated Workers
Assistance National Reserve: $200 million for national
emergency grants, with an emphasis on serving areas of high unemployment or
high poverty and providing the income and support services necessary for an
individual to participate in job training.
·
YouthBuild: $50 million to help at-risk youth gain education and
occupational credentials while building or rehabilitating affordable housing.
The funds will supplement awards to existing programs and to expand a current
competition. For program years 2008 and
2009, the program can serve youth who have dropped out of high school and
re-enrolled in alternative school provided that reenrollment is part of a
sequential service strategy.
Unemployment Insurance
(UI) Modernization
$500 million in UI
administrative funding is provided to all states. $7 billion in incentive payments is available for States who
enact specific reforms designed to increase UI coverage among low-wage,
part-time and other jobless workers.
Temporary Assistance for States with Advances
The Act temporarily waives the accrual of interest and
interest payments on state loans from the Federal Unemployment Account (FUA)
used to pay state Unemployment Insurance benefits. The provision is in
effect from the date of enactment to December 31, 2010.
Extension of Unemployment Compensation Benefits
The Act amends the Unemployment Compensation Extension
Act of 2008 to provide for the continuation of temporary, extended unemployment
benefits of 20 weeks for all eligible individuals who exhaust state benefits,
and an additional 13 weeks for individuals living in states with a high rate of
unemployment (3 month seasonally adjusted average UI rate of at least 6
percent).
Weekly Unemployment
Insurance Benefit Increase
States may voluntarily
enter into an agreement with the Secretary of Labor to provide an increase to
both regular and extended unemployment benefits by $25 a week through December
31, 2009, with full reimbursement paid by the federal government.
State Employment Service
and Reemployment Services Grants
State Employment Service
agencies under the Wagner-Peyser Act will receive $400 million for reemployment
and job matching assistance, of that $250 million is designated for
Reemployment Service Grants to provide customized reemployment services to
Unemployment Insurance (UI) claimants.
Funds can also be used to improve the integrated information technology
required to identify and serve the needs of UI claimants. The additional funds
will be allocated to states based on three factors: the number of individuals in the labor force, the rates of
unemployment, and the relative share of long-term unemployed individuals.
Job Corps Modernization
$250
million targeted for the construction,
rehabilitation, and acquisition of Job Corps centers, including the use of
multi-year leasing authority, if a lease arrangement would result in
construction within 120 days of enactment. The Secretary of Labor can transfer
up to 15 percent of the funding to meet center operational needs, which may
include training for careers in the energy efficiency, renewable energy and
environmental protection industries.
Trade
Adjustment Assistance
The Act reauthorizes the
Trade Adjustment Assistance (TAA) programs through December 31, 2010 and
establishes an Office of Trade Adjustment Assistance at the Department of
Labor, Employment and Training Administration.
The following benefits would be available to job seekers, eligible for
the program:
·
Provides $575 million in
training funds for fiscal years 2009 and 2010 and $143.7 million for October
1-December 31, 2010. Authorizes
significant program expansions including:
·
Eligibility to workers
of the service sector and public agencies.
·
Additional training
options (long-term, part-time and pre-layoff training).
·
Allows training funds to
be used for apprenticeship programs, prerequisite training, and training at an
accredited institution of higher education
·
Allows for training in
which to obtain or complete a degree or certification program (where degree/
certificate lead to employment).
·
Requires the Secretary
of Labor to make employment and case management services available to TAA
eligible workers.
The following would be new
programs for communities, such as:
·
Sector Partnership Grant
Program: $40 million in discretionary
grants for each fiscal year 2009 and 2010, and $10,000,000 for October 1-December 31, 2010.
·
Community College and
Career Training Grant Program: $40
million in discretionary grants for each fiscal year 2009 and 2010, and $10
million for October 1, 2010 – December 31, 2010 to develop, offer, or improve
education and career training for eligible TAA workers.
·
Establishes an
Interagency Community Assistance Working Group chaired by the Commerce
Secretary/designee for the purpose of coordinating federal response to, and
facilitating economic adjustment for, communities impacted by trade. The working group is to include: Departments
of Agriculture, Defense, Education, Labor, Housing and Urban Development,
Health and Human Services, Small Business, and Treasury.
ENERGY AND NATURAL RESOURCES
Smart
Grid
Transmission
Grid: the bill provides a total of $11
billion for transmission infrastructure including:
1) $4.5
billion to implement programs authorized under title XIII (Smart Grid) of the
Energy Independence and Security Act of 2007 and for other investments that
modernize the electricity grid. The bill also makes several modifications
to ESEA title XIII including: changing the Federal Smart Grid Investment
Matching Grant Program from a 20% federal reimbursement to a 50% federal grant
for qualifying investments and requiring recipients of grant funds to provide
such information as the Secretary determines is necessary to create a
clearinghouse of smart grid data.
This
section also includes: $100 million for worker training; $80 million for a
study of future demands and transmission requirements; a requirement that FERC
provide technical assistance to the North American Electric Reliability
Corporation, the regional reliability entities, the States, and other
transmission owners and operators for the formation of interconnection based
transmission plans for the Eastern and Western Interconnections and ERCOT; and
$10 million for the Smart grid interoperability framework authorized in ESEA
2007.
2) $3.25
billion for the Western Area Power Administration (WAPA) to increase their
borrowing authority, and $3.25 billion for the Bonneville Power Administration
(BPA) to increase their borrowing authority.
Renewable
Electricity Transmission Study – requires the Secretary to include 4 new
factors in the study due August 2009: the significant potential sources of
renewable energy constrained by the lack of transmission capacity; the reasons
for failure to develop the capacity; recommendations for achieving capacity;
the effect federal or state legal challenges are having on citing
transmission.
Renewable Energy
Innovative Technology Loan Guarantees: $6 billion for loan guarantees that fund a variety of energy projects including next generation nuclear, clean coal and renewables. The Secretary may limit the funding to only transmission, advanced biofuels and renewable energy projects that can commence construction no later than 9/30/11. The biofuels projects must be at a pilot or demonstration scale and reduce life-cycle greenhouse gas emissions. Further, no more than $500 million can be spent on biofuels projects. The Secretary may consider the viability of, incentives for and the importance of transmission projects, as well as whether it would help meet a state or region’s environmental goals, when deciding whether to fund them. $10 million shall be transferred to the Advanced Technology Vehicles Manufacturing Program for administrative expenses.
Efficiency
Local Government Energy Efficiency Block Grants (EEBG): $3.2 billion to help state and local governments make investments that make them more energy efficient and reduce carbon emissions. Of the $3.2 billion, $2.8 billion shall be distributed according to formula. 12 percent of these funds are given to the State Energy Programs. The remaining $400 million shall be awarded on a competitive basis.
State Energy Programs: In addition to the state share of the EEBG, $3.1 billion will be distributed through the SEP according to current formulas. The bill would require that in order to receive stimulus funds, the Governor of a state must notify the Secretary of Energy in writing that the Governor has obtained necessary assurances that each of the following will occur:
1) The applicable state regulatory authority will seek to implement in appropriate proceedings with each utility, a general policy that ensures utility financial incentives are aligned with helping customers use energy more efficiently and provides the utility with timely cost recovery and a timely earnings opportunity
2) The State or applicable local government that has authority to adopt building codes will adopt residential codes that exceed the most recently published International Energy Conservation Code or achieves equivalent/greater savings; adopt a commercial building code that meets or exceeds ANSI/ASHRAE/IESNA Standard 90.1-2007 or achieves equivalent/greater savings; a plan is developed for the jurisdiction achieving compliance to do so within 8 years of the date of enactment in at least 90 percent of new or renovated residential and commercial building space.
3) The State will give priority to the extent practicable to projects that include an expansion of existing energy efficiency programs approved by the State or appropriate regulatory authority, including building and industry retrofits funded by the state or through ratepayers; the expansion of existing programs to support renewable energy projects and deployment activities and cooperation and joint activities between States to advance more efficient and effective use of this funding to support energy efficiency priorities.
The bill also waives the twenty percent state match requirement and waives the limitation on the percentage of funding that can be used for the purchase and installation of energy efficiency equipment and materials.
Energy Efficiency and Renewable Energy Research Development, Demonstration and Deployment: $2 billion for energy efficiency and renewable energy research, development, demonstration, and deployment activities, including $800 million for biomass projects and $400 million for geothermal projects. Funds are awarded on a competitive basis to universities, companies, and national laboratories. Additionally, within available funds, the Department may use $50 million to support research to increase information and communications technology efficiency and standards.
Science and Research
$1.6 billion for DOE science programs and $400 million for the Advanced Research Projects Agency created in the American Competes Act to fund research that will reduce imports of energy from foreign countries and energy-related GHG emissions and improve energy efficiency across all economic sectors.
Home Weatherization: $5.0 billion to help low-income families reduce their energy costs by weatherizing their homes. These funds are distributed by state energy offices to local energy programs. The bill would lower the eligibility income threshold from 150% the rate of poverty to 200% the rate of poverty and increase the limit on the amount of assistance from $2,500 to $6,500.
Smart Appliances: $300 million to provide consumers with rebates to replace old appliances with energy efficient Energy Star products. The program was authorized by Section 124 of the Energy Policy Act of 2005 (EPAct 05).
Fuels and Vehicle Technology
Advanced Battery Loans and
Grants: $2 billion for grants for the manufacturing of advanced batteries
and components, including advanced lithium ion batteries, hybrid electrical
systems, component manufacturers and software designers.
Electric Transportation: $400 million for a new grant program created in section 131 of EISA to encourage electric vehicle technologies.
Alternative Buses and Trucks: $300 million for the Clean Cities program for state and local governments to purchase alternative fuel vehicles; authorized by section 721 of EPAct 05.
Fossil Energy
$3.4 billion for Fossil Energy Research and Development Program including $1 billion for fossil energy research and development programs; $800 million for Clean Coal Power Initiative Round III Funding Opportunity Announcement; $1.5 for a competitive grant program for industrial carbon capture and energy efficiency projects; $50 million for a competitive grant on site characterization activities in geologic formations; $20 million for geologic sequestration training and research and $10 million for program direction funding. The Act does not include funds for FutureGen.
DOE facilities Environmental
Cleanup
$483 million for Non-Defense Environmental Cleanup; $390 million for Uranium Enrichment Decontamination and Decommission Fund; $5.1 billion for Defense Environmental Cleanup.
National Oceanic and Atmospheric
Administration (NOAA)
Satellites and Sensors: $600 million for satellite development and acquisitions. Of the amounts provided, $170,000,000 shall address gaps in climate modeling and establish climate data.
Habitat Restoration: $400 million for ready-to-go habitat and fisheries restoration, marine debris and mitigation projects.
Environmental Protection Agency
(EPA)
Clean Water State Revolving Fund: $4 billion for loans to help communities
upgrade wastewater treatment systems.
Drinking Water State Revolving Fund: $2 billion for loans for drinking water
infrastructure.
Both SRFs – The Administrator must reallocate funds
where projects are not under contract or construction within 12 months of the
date of enactment. Priority funding must be given to projects on the
State priority list that can be under construction within 12 months of
enactment. Further, states must use not less than 50 percent of the funds
for grants, negative interest loans or principal forgiveness. Not
less than 20 percent of the SRFS fund must green infrastructure, water and/or
energy efficiency, innovative water quality improvements, decentralized
wastewater treatment, stormwater runoff mitigation and water
conservation. If projects are not available, the state must certify to
the Administrator that it does not have applicants with these types of
projects. Additionally, the funds cannot be used to purchase land or
easements. Funds may be used to buy, refinance or restructure existing
debt obligations incurred on or after October 1, 2008. The bill
would waive the 20 percent state match requirement.
Brownfields: $100 million for competitive grants for
evaluation and cleanup of former industrial and commercial sites. Cost
share requirements are waived.
Superfund Hazardous Waste Cleanup: $600 million to clean up hazardous and
toxic waste sites. Maintains the 10 percent state match requirement.
Leaking Underground Storage Tanks: $200 million for enforcement and cleanup
of petroleum leaks from underground storage tanks; waives the state match
requirement.
Diesel Emissions Reduction: $300 million for grants and loans to state and local
governments for projects that reduce diesel emissions. 70% of the funds go to
competitive grants and 30% funds grants to states with approved programs.
ARRA waives the State Grant and Loan Program matching incentive provisions.
U.S. Department of Agriculture (USDA)
Agricultural Research Service: $176 million for maintenance work at ARS research facilities, with priority given to critical deferred maintenance work.
USDA Building and Facilities Improvements: $24 million for priority repairs, modernization, and security improvements at the USDA headquarters complex.
Rural Water and Waste Disposal: $1.38 billion to support $3.8 billion in
grants and loans to help communities fund drinking water and wastewater
treatment systems. $2.8 billion is for direct loans and $968 million for
grants.
Wildland Fire Management: $500 million for Wildland Fire Management
which includes $250 million for hazardous fuels removal and other efforts to
prevent wildfires on public lands. The remaining $250 million would go to
state grants for hazardous fuels reduction, volunteer fire assistance, forest
health projects, city forest enhancements, and wood to energy grants on state
and private lands.
Watershed and Flood Prevention: $290 million for watershed improvement
programs to design and build flood protection and water quality projects,
repair aging dams, and purchase and restore conservation easements in river
flood zones. The funds include $145 million for floodplain easement and
restoration projects.
Watershed Rehabilitation Program: $50 million for ready-to-go dam rehabilitation
projects that have reached the end of their engineering design life, and can be
fully paid for using the appropriated funds.
U.S. Forest Service: $650 million for ready-to go restoration
and maintenance projects, including roads, bridges, trails, watershed, forest thinning, abandoned mine
reclamation, and habitat restoration projects.
Department of the Interior
U.S. Geological Survey (USGS): $140 million to repair and modernize USGS science facilities and equipment, including stream gages.
Bureau of Land Management: $180 million for construction
projects, including priority road, bridge, and trail repair or decommissioning;
deferred maintenance; facilities construction and hazardous fuels reduction.
$125 million for the management of lands and resources.
Fish and Wildlife Service: $115 million for construction projects,
including projects on National Wildlife Refuges and National Fish
Hatcheries. $165 million is available for resource management.
National Park Service: $146 million for the operation
of the national park system. $589 million for construction projects in the
National Parks.
Bureau of Reclamation: $1 billion for capital improvement
projects, including funds to provide clean, reliable drinking water to rural
areas and for water reuse and recycling projects to ensure adequate water
supply to western localities impacted by drought; $126 million of the funds
shall be used for water reclamation and reuse projects; $50 million may
be transferred for projects associated with the Central Utah Project Completion
Act s and $50 million for projects associated with the California Bay-Delta
Restoration Act projects; $60 million is allocated for water intake and
treatment facilities; $10 million for canal inspection. The Act provides
the Commissioner the flexibility to determine repayment rates so long as none
exceeds 50 years.
Department
of Defense
Corps of Engineers: $2 billion for construction on projects
that have already received federal funds; $375 million for the Mississippi
River and Tributaries; $2.075 billion for Operations and Maintenance for
projects that can be completed with these funds; $25 million for the Corps
regulatory program.
Department of Defense Research: $75 million for research into using renewable energy to power weapons systems and military bases.
General
Services Administration
Green Buildings: $4.5 billion to convert GSA facilities into High Performance Green Buildings and $400 million for the Office of High Performance Green Buildings.
Efficient Fleets: $300 million to replace older vehicles owned by the federal government with alternative fuel automobiles
HEALTH AND HUMAN SERVICES
Enhanced Federal Medical Assistance
Percentage (FMAP) (Title V, Sec 5001)
Hold
harmless. The
state’s FMAP for federal FYs 2009, 2010 and the first calendar quarter of 2011
(through December 31, 2010) would be no lower than the state’s FMAP for FY
2008.
Across-the-board
increase. All states would be
eligible for a 6.2 percentage point FMAP increase beginning October 1, 2008
through December 31, 2010, after application of the hold harmless provision.
High
unemployment states. States with
significant changes in unemployment would be eligible for an additional FMAP
increase determined through a complicated formula.
The
state would be eligible for the additional increase beginning January 1, 2009
until July 1, 2010. The state share could decrease by a higher percent but
would not increase again during this period. States would receive 60 days
notice of an increase in the state share of Medicaid costs. The unemployment
adjustment tiers are:
·
5.5%: unemployment increase of at least 1.5 but less
than 2.5 percentage points
·
8.5%: unemployment increase of at least 2.5 but less
than 3.5 percentage points
·
11.5%: unemployment
increase of 3.5 percentage points or more
Calculation: If the state qualifies under one of these tiers, the
state would still receive the 6.2 percentage point increase, however, it is
easier to think of this as two separate increases of 3.1 percentage points
(which will become clear later). There are three basic steps for the
calculation of the unemployment adjustment:
·
Step 1: An increase of
3.1 percentage
points (half of 6.2) in the
state’s FMAP
·
Step 2: A decrease in
the state match based on the unemployment adjustment percent
·
Step 3: Increase the
FMAP by an additional 3.1 percentage points (the remaining half of
6.2)
EXAMPLE A: In
a state with FMAP of 50 percent and a change in unemployment rate of 1.2
percentage points.
·
Step 1: Increase FMAP by 3.1 percentage points, FMAP =
50+3.1= 53.1. State share is now 46.9
·
Step 2: Determine unemployment adjustment factor,
which because the unemployment rate was below 1.5, is zero.
·
Step 3: Increase FMAP by an additional 3.1 percentage
points, FMAP = 53.1+3.1= 56.2
·
RESULT: state share is 43.8, federal share is 56.2
EXAMPLE B: In
a state with FMAP of 50 percent and a change in unemployment rate of 2.0
percentage points.
·
Step 1: Increase FMAP by 3.1 percentage points, FMAP =
50+3.1=53.1. State share is now 46.9
·
Step 2: Determine unemployment adjustment factor, 2.0
percentage point increase is 5.5%. Multiply your state share by this percent:
46.9*.055=2.58.
Therefore
reduce the state share by 2.58 percentage points: 46.9-2.58= 44.32. Result:
state share 44.32, federal share 55.68
·
Step 3: Increase FMAP by 3.1 percentage points:
55.68+3.1= 58.78
·
RESULT: state share is 41.22, federal share is 58.78
Commonwealths
and Territories. They may
choose the 6.2 percentage point increase plus a 15 percent increase in
the capped amount or a 30 percent increase in the capped amount.
Application
of FMAP to other programs/services. FMAP
increases do not apply to payments for Title IV Parts A (Temporary
Assistance for Needy Families, TANF), B (Child and Family Services), and D
(Child Support and Establishment of Paternity), the State Children’s Health
Insurance Program (SCHIP), disproportionate share hospitals (DSH), and other
enhanced payments based on FMAP.
The
hold harmless and 6.2 across-the-board percentage point increases in FMAP would
apply to Title IV-E payments (Foster Care and Adoption Assistance) but
reductions in the state share due to unemployment increase would not apply
to Title IV-E.
These
FMAP increases do not apply to payments for individuals enrolled in
Medicaid as a result of an expansion in the state income eligibility
policies as of July 1, 2008. States would still receive their regular FMAP for
such individuals.
Requirements
and Restrictions. ARRA
includes several requirements/ and restrictions and prohibits the HHS Secretary
from waiving these. These include:
·
States may not have
eligibility standards, methodologies, or procedures in place in the
Medicaid state plan or a Sec. 1115 waiver program that are more restrictive
than those in effect as of July 1, 2008.
o
Any state that implemented
more restrictive policies since July 1, 2008, has until July 1, 2009 to restore
such policies. The state would then be fully eligible for the enhanced match,
retroactive to October 1, 2008.
o
Any state that
implements more restrictive policies as of July 1, 2008 and restores such
policies after July 1, 2009 will be eligible for the enhanced FMAP beginning
with the first calendar quarter that it restored the eligibility
policies.
o
Certain exceptions apply
for delay in approval of a plan or waiver.
·
The state may not
increase the non-federal share it requires from local governments, above that
in place as of September 30, 2008. This requirement is not applicable for the
hold harmless.
·
The state must report on
compliance with provider prompt payment requirements beginning with the date of
enactment of the ARRA. Extends prompt pay requirements to nursing facilities
and hospitals beginning June 1, 2009. Allows the Secretary to waive this
requirement in certain situations.
·
Prohibits states from
depositing funding from the increased FMAP rate into any state reserve or rainy
day fund. This does not apply to increases due to the hold harmless.
·
Increases may not result
in the state FMAP being greater than 100 percent.
·
State must submit report
on its use of the additional federal funds from the enhanced FMAP By
September 30, 2011.
Temporary Increase for Disproportionate
Share Hospitals Payments (DSH) (Title
V, Sec 5002)
Temporary
2.5% increase in the state Medicaid DSH allotment for FYs 2009 and 2010.
Medicaid
Regulations (Title V, Sec 5003)
Delays
or addresses several Medicaid regulations, including:
·
Extends the current
moratoria (P.L. 110-252), on three Medicaid regulations through June 30,
2009: optional targeted case management services (TCM), school administration
and transportation services, and provider taxes.
·
Applies a new moratorium
through June 30, 2009 to the final regulation regarding Medicaid outpatient
hospital facility services (73 Federal Register 66817).
·
Includes a “Sense of
Congress” that the HHS Secretary should not issue final regulations for pending
rules on: cost limits on public providers, graduate medical education (GME)
payments and rehabilitative services.
Transitional Medical Assistance
Extension and Reporting Requirement (Title
V, Sec 5004)
Extends
the Medicaid Transitional Medical Assistance (TMA) option for 18 months,
through December 31, 2010. It gives states the option to extend the initial
period of eligibility for TMA to 12 rather than the current six months and to
waive certain enrollment requirements, beginning July 1, 2009.
Beginning
July 1, 2009, states would be required to report monthly enrollment and
participation rates for adult and child enrollees and the number of these who
become eligible under another Medicaid category or for SCHIP.
Qualifying Individual Program Extension (Title V, Sec 5005)
Extends
through December 31, 2010 the Qualifying Individual (QI) program.
State Option for Family Planning
Services. No provision.
Medicaid Provisions Impacting American
Indians (Title V, Sec. 5006)
Provisions
impacting health care for American Indians, including:
·
Prohibit state Medicaid
programs from imposing cost-sharing requirements on Medicaid-eligible American
Indians when the beneficiary is receiving services from an Indian health care
provider or from a Contract Health Services (CHS) provider.
·
Exempt certain tribal,
religious, spiritual, or cultural property from being considered an asset of an
individual Indian for purposes of determining Medicaid and SCHIP eligibility or
estate recovery.
·
Require states consult
on an ongoing basis with Indian Health Programs and Urban Indian Organizations.
·
Applies Medicaid and
SCHIP managed care rules to Indian health care providers.
COBRA
Healthcare for the Unemployed (Title III, Sec. 3001)
Under current law, individuals losing employment may
be eligible to continue their employer-based health care coverage under a
program known as COBRA. This entitles the individual to continued access to the
same health plan they were receiving, but the individual is generally
responsible for 102% of the total cost of the monthly premium.
COBRA continuation subsidy. Individuals will be eligible for a federal subsidy
worth 65% of the monthly COBRA premium for the individual and their dependents
for a period of nine months. The subsidy is payable directly to the health plan
or other eligible entity as a tax credit. It does not count toward the
individual’s gross income with respect to taxation or eligibility for other
government programs. The subsidy is limited to individuals with incomes under
$125,000 and $250,000 couples.
The COBRA continuation subsidy is available for the
period September 1, 2008 through December 31, 2010. Individuals are no longer
eligible for the subsidy once they are eligible for another group health plan.
Eligible COBRA plans. COBRA continuation coverage is that offered by the
employer or under a state program that provides continuation coverage
comparable (“mini-COBRAs”) to that the individual received from their former
employer.
The individual may chose a COBRA continuation plan
that is different than the one he/she
was enrolled in at the time of separation as long as the plan is:
·
Approved by the
employer;
·
Available to active
employees of the employer;
·
The premium for the
different coverage is not higher; and
·
The different coverage
is not: service specific, for example dental or vision only coverage, a
flexible spending arrangement, on-site medical care coverage only
State Medicaid option for the unemployed. No provision.
Health Information Technology (HIT)
(Title XIII)
In
brief, ARRA lays the foundation to adopt national HIT standards, provide
incentives for adoption and use of HIT, and addresses privacy and security
issues. The proposal includes approximately $2 billion to invest in health
information technology infrastructure and $17 billion in incentives for
Medicare and Medicaid providers.
Office
of the National Coordinator for Health Information Technology (ONC). The ARRA codifies the ONC for Health Information
Technology within the Department of Health and Human Services and define the
duties of the National Coordinator, which would include developing standards,
coordinating HIT policy across policies and programs within HHS and across
other executive branch agencies, update specific aspects of the Federal HIT
Strategic Plan (developed as of June 3, 2008). The bill requires this plan to
address a plan for utilization of electronic health records by 2014. It also
would create HIT Policy and Standards committees, though state representation
is not specifically mentioned.
National
standards. In general, it
requires the government to take a leadership role to develop standards by 2010
that allow for the nationwide electronic exchange and use of health information
to improve quality and coordination of care. By December 30, 2010, it requires
the Secretary to adopt an initial set of standards, implementation
specifications, and certification criteria. It makes adoption of certain
standards and certifications by private entities voluntary.
State
grants to promote HIT (Title XIII, Sec. 13301). The proposal would establish a program whereby states or a
state-designated entity could receive grants for planning or implementation to
assist with and expand adoption of HIT.
For grants awarded prior to FY 2011, the Secretary may determine if a
state match is appropriate. Beginning in fiscal year 2011, there is a state
match requirement that is equal to or greater than a defined percent of the
federal contribution for grants awarded in FY 2011 as follows:
·
FY 2011, not less than
$1 for every $10 of federal grant funding;
·
FY 2012, not less than
$1 for every $7 of federal grant funding; and
·
FY 2013 and thereafter,
not less than $1 for each $3 of federal grant funding.
The
proposal directs assistance for implementation of health information
technology, with the goal that funding could be used for the following
·
HIT architecture that
will support the nationwide electronic exchange;
·
Integration of HIT into
training of health professionals and others in the healthcare industry;
·
Training on and
dissemination of information on best practices to integrate HIT into a
provider’s delivery of care. Such efforts must be coordinated between HHS and
state agencies administering Medicaid and the State Children’s Health Insurance
Program (SCHIP);
·
Regional or sub-national
efforts towards health information exchange;
·
Infrastructure and tools
to promote telemedicine; and
·
Promotion of the
interoperability of clinical data repositories or registries.
Grants
to states to create loan programs.
The proposal would create a competitive grant program to allow eligible states
or Indian tribes to establish a certified electronic health record (EHR)
technology loan fund. Grants to states/tribes could be awarded no earlier
than January 1, 2010. The loan fund would allow states/tribes to distribute
a loan to a provider or other eligible entity if the provider/entity agrees to
certain requirements, for example providers must agree to report on quality
measures. Private sector contributions
to the loan fund are permissible. Loan funds could only be used for specified
EHR-related technology purposes.
States
would be required to match federal contributions of at least $1 for every $5 in
federal grant funding. Public funds and private sector contributions are
permissible sources for the non-federal match.
The
purposes of the loans would be similar to those noted in the previous section
regarding grants to states.
Medicaid
HIT-related funding (Title IV, Sec.
4201). States may reimburse
eligible Medicaid providers for the cost of qualified HIT purchases. The
federal financial participation (FFP) rate for such payments is:
·
100 percent for Medicaid
providers’ purchase of certified EHR, including training and maintenance.
·
90 percent for certain
administrative expenses.
The
reimbursement payment for non-hospital based Medicaid providers (with a
specified Medicaid caseload) is:
·
85 percent of the net
allowable costs incurred for the purchase, implementation, and use of certified
EHR technology.
·
A separate reimbursement
is applied for children’s and acute care hospitals.
·
Other hospitals are to
be reimbursed according to the Medicare incentive policy.
Incentive
payments to providers for HIT adoption and operation are capped – annually and
in the aggregate for implementation related expenses.
·
Maximum net allowable
costs in the first year is $25,000
·
Maximum net allowable
costs for a subsequent year is $10,000.
·
Reimbursement is limited
to five years and cannot be provided after 2021.
·
Providers would be
responsible for any technology related expense not referenced in the proposal.
The
higher FFP is contingent upon states meeting several requirements, including:
·
Determine providers are
demonstrating “meaningful use” of the EHR technology, as determined by the
state and HHS Secretary.
·
Reimburse providers
directly, without a deduction or rebate.
·
Track the use of EHRs,
conduct oversight, encourage adoption of certified EHRs and exchange of health
care information.
The
proposal seeks to minimize duplication and harmonize requirements for providers
participating in both Medicaid and Medicare.
Privacy
provisions (Title XIII, Sec. 13400).
The proposal includes provisions to strengthen privacy and security laws impacting
identifiable health information. It does not appear to preempt state law.
Provisions address breach notifications processes. It does not include a
private right of action. It would provide some enforcement authority on behalf
of individuals to states’ Attorneys General and would establish a method to
distribute civil monetary penalty or monetary settlements collected.
Prevention
and Wellness Fund
$1
billion is designated for the Department of Health and Human Services to
administer a “Prevention and Wellness Fund.” HHS must provide Congress with
operating plans prior to obligating any monies from the Fund in fiscal years
2009 and 2010. These funds are to be distributed according to the public health
priorities of the Secretary of Health and Human Services and the Director of
the Centers for Disease Control and Prevention. Specific funding allocations
include:
·
$300 million for the CDC
317 immunization program;
·
$650 million for
evidence-based clinical and community-based prevention and wellness strategies,
authorized under the Public Health Services Act and determined by the
Secretary, that deliver measurable health outcomes that address chronic disease
rates; and
·
$50 million to states to
implement healthcare-associated infection prevention strategies.
Healthcare
Effectiveness Research
$1.1
billion is provided speed development and dissemination of research assessing
the comparative effectiveness of health care treatments and strategies. The
bill establishes the Federal Coordinating Council for Comparative Effectiveness
Research which is tasked with coordinating comparative effectiveness and
related health services research conducted or supported by federal departments
and agencies in order to reduce duplication and leverage resources.
Community
Health Centers (CHCs)
$1.5
billion directed for federally qualify health centers (FQHCs) for construction,
modernization, health information technology improvements. $500 million is
appropriated for FQHC grant funding for services and operations under.
Training
Primary Care Providers
The
ARRA makes additional investments in health care workforce development
programs, including:
·
$300 million for the
Nation Health Service Corps recruitment and field activities.
·
$200 million for primary
care medicine, dentistry, public health and preventive medicine program,
scholarship and loan repayment programs under PHSA Titles VII and VIII, and
cross-state licensing for health specialists.
Aging Services Programs
An
additional $100 million is provided for certain “Aging Services Programs”
included in the Older Americans Act.
Indian
Health Service Facilities
Approximately
$727 million is to modernize hospitals and health clinics and make healthcare
technology upgrades in underserved rural areas.
Supplemental Nutrition Assistance Program (SNAP)
$20
billion for the Supplemental Nutrition Assistance Program (SNAP), including a
13.6 percent benefit increase in nutrition assistance for all states, Puerto
Rico and American Samoa for fiscal year 2009, based on the June 2008 thrifty
food plan value. Additionally, $145 million will be made available in fiscal
year 2009 and $150 million in fiscal year 2010 to cover administrative costs
associated with the benefit increase, of which $4.5 million is allocated to the
Food and Nutrition Service to cover expenses related to management and
oversight of the program, and monitoring the integrity and evaluating the
effect of the payments made.
Any
errors in the implementation of this increased benefit will not be subject to a
120-day limit, and may be calculated for management purposes only, not
applicable to the payment error rate. Further, a restriction under the Food and
Nutrition Act that disqualifies jobless workers participating in work
registration and employment and training requirements from receiving nutrition
assistance is lifted, through to September 30, 2010.
Funds
will be allocated as grants to states, and will remain available until
expended. 75% of the available funds will go to states based on their share of
households participating in SNAP for the most recent 12-month period for which
data are available, and the remaining 25% of funds will be allocated to states
based on their increase in households participating in SNAP for the same 12
month period.
Special
Supplemental Nutrition for Women, Infants, and Children (WIC)
Provides $500 million for the supplemental nutrition
program serving Women, Infants, and Children (WIC), of which $400 million shall
be placed in reserve and allocated at the discretion of the Secretary to
support participation, should cost or participation exceed budget estimates.
Temporary
Assistance for Needy Families
TANF Emergency Contingency Fund. Provides $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. The bill creates an emergency contingency fund from which States can
request quarterly grants for three purposes:
1)
Caseload increases
2)
Increased expenditures
related to non-recurrent short term benefits
3)
Increased expenditures
for subsidized employment.
In each case, eligibility for
payments from the fund will be triggered if the state’s numbers (caseload data
or expenditures respectively) for a given quarter exceed those for the
corresponding quarter in the emergency fund base year. Emergency fund base year
is defined as the year (either 2007 or 2008) where the state’s enrollment or
expenditure data were the lowest. In each case, the actual quarterly grant
would be for 80% of the total increase in program spending relative to the base
year. The total amount disbursed from the emergency fund, in combination with
existing contingency dollars, cannot exceed 50% of a state’s block grant for
that year.
Hold-harmless for Caseload Increases for
the Caseload Reduction Credit. Provides
states an optional measuring period for calculating the caseload reduction
credit for Fiscal Year 2009, 2010 and 2011. In each instance, a state has the
option to measure caseload reduction from Fiscal Year 2005 to either Fiscal
Year 2007 or Fiscal Year 2008 when determining the caseload reduction credit
that applies toward meeting TANF work participation rate standards between
Fiscal Year 2009 and Fiscal Year 2010.
Extension of TANF Supplemental Grants. Extends supplemental grants at the $319 million annual
level through FY2010. Supplemental grants provide assistance to states with
high population growth and/or increased poverty, 17 states currently receive
these grants, which expire in June 2009. In FY2010, each of the 17 qualifying
states will receive the same supplemental grant amount as it will for FY 2009.
Flexibility in TANF Carryover Funds. Removes the current restriction on states and tribes
for using reserved, unused TANF funds (“carry-over” funds) for cash welfare
only, and instead permits states to use TANF reserves for any TANF benefit or
service.
Child
Support Enforcement
Provides
$1 billion in federal incentive funds for states to collect child support payments
owed to families. This allocation represents a temporary two-year fix of the
federal child support incentive match previously repealed in the Deficit
Reduction Act of 2005.
Child Care Development Block Grant
$2 billion to provide
child care services for an additional 300,000 children in low-income families
while their parents go to work, of which $1 billion will be made available
October 1, 2009. These funds must be used to supplement, not supplant state
general revenue funds for child care assistance for low-income families.
Community
Services Block Grant
Provides
$1 billion for Community Service Block Grants to local communities to support
employment, food, housing, and healthcare efforts serving those hardest hit by
the recession, of which $500 million shall become available on October 1, 2009.
Community action agencies have seen dramatic increases in requests for their
assistance due to rising unemployment, housing foreclosures, and high food and
fuel prices.
**Funds
for the Low Income Home Energy Assistance Program (LIHEAP) and Social Services
Block Grant (SSBG) were not included in the final American Recovery and
Reinvestment Act agreement.
Justice Programs, State and Local Law
Enforcement Activities
The
Act provides a total of nearly $4 billion in grants to support state and local
law enforcement, including:
·
Byrne Justice Assistance Grants: $2 billion in formula grants to help prevent, fight,
and prosecute crime.
·
Community Oriented Policing Services (COPS) grants – $1 billion in grants to support the hiring of
additional law enforcement officers.
The Act waives the 25 percent local match requirement and the $75,000
salary cap per officer.
·
Byrne competitive grants: $225 million in competitive grants to support crime
prevention, improve the administration of justice, provide services to victims
of crime, and other activities.
·
Violence Against Women grants: $225 million, of which $175 million is for formula
grants and $50 million is to be used for transitional housing assistance.
·
Victims Compensation: $100 million for grants to support state compensation and assistance
programs for victims and survivors of crime.
·
Rural Law Enforcement grants: $125 million in grants to combat drug-related crime
in rural areas.
·
Southwest border/Project Gunrunner: $40 million in competitive grants to provide
assistance and equipment to local law enforcement along the Southern border or
in High-Intensity Drug Trafficking Areas to combat narcotic activity. $10 million of these funds are to be
transferred to the Bureau of Alcohol, Tobacco, Firearms, and Explosives for
Project Gunrunner.
·
Tribal Law Enforcement Assistance: $225 million to be distributed to American Indian
and Alaska Native tribes.
·
Internet Crimes Against Children: $50 million in grants to enhance investigative
responses to predators using the Internet or other technology to sexually
exploit children.
Homeland
Security Grants
The Act provides $510 million in homeland security
grants and waives requirements for states and localities to provide matching
funds.
·
Transportation Security grants: $150 million in risk-based grants for public
transportation, railroad security, and Amtrak security.
·
Port Security grants: $150 million for port security grants.
·
Firefighter Assistance grants: $210 million to be used for upgrading or modifying
fire stations. The Act caps a single
grant award at $15 million.
Military Construction, Army National
Guard
$50 million for planning, design, and construction
projects.
Military Construction, Air National
Guard
$50 million for planning, design, and construction
projects.
Veterans Affairs
$150
million in grants for construction of state extended care facilities for
veterans.
INFRASTRUCTURE AND ECONOMIC
DEVELOPMENT
·
The Act outlines several
transparency, oversight, and accountability requirements that would apply to
all spending.
·
In most instances, the
distribution of federal money occurs through existing formulas.
·
Maintenance of
Effort. For transportation, the Act requires governors to certify within
30 days of enactment that the state will maintain its planned investment in
those types of projects for which the state receives funding under the bill,
followed by regular updates through September 30, 2010. If a state is unable to maintain its
investment, then the state is ineligible to receive a portion of any
redistributed unobligated funds.
Key
Investments:
Transportation Infrastructure
Office of the Secretary
Supplemental Discretionary Grants.
The Act provides $1.5
billion for competitive grants to states, local governments, and transit
agencies for projects across all surface transportation modes that will have a
significant national, metropolitan, or regional impact. The Secretary shall publish grant
competition criteria within 90 days of enactment of the Act, and must ensure an
equitable geographic distribution of funds and an appropriate balance between
metropolitan and non-metropolitan areas.
Not more than 20 percent of the funds available may fund projects in a
single state. Federal share is 100
percent, with priority given to projects for completion within three years of
enactment of the Act.
Federal Aviation Administration –
The Act provides a total of
$1.3 billion: $1.1 billion in discretionary grants-in-aid to
airports, and $200 million in supplemental funding for FAA facilities
and equipment. The Secretary shall
award 50 percent of the grants-in-aid within 120 days of enactment of the Act,
with the remaining portion awarded within one year of enactment.
Federal Highway Administration
The Act provides $27.5 billion for highway and
bridge infrastructure investment.
·
Funding set-asides ($900 million): $550 million for Indian reservation and federal lands
investments; $60 million for priority Federal-aid primary routes; $150 million
for distribution among U.S. territories ($105 million to Puerto Rico); $20
million for highway surface transportation and technology training; $20 million
for disadvantaged business enterprises bonding assistance; $40 million for FHWA
administrative expenses; and $60 million for competitive discretionary grants
to the states for projects with completion within two years of enactment of the
Act.
·
Transportation enhancement. States must
set-aside three percent of their apportionment for transportation enhancement
projects.
·
Distribution Formula: Remaining funds distributed to states using a ratio formula specified
in the Consolidated Appropriations Act of 2008, based on a state’s share of
apportioned programs for 2008 versus the total apportioned program amounts for
all states. Apportionment of funds must occur within 21 days of enactment.
Funding priority to projects that: (i) can be completed within three years, and
(ii) are located within “economically-distressed areas” (42 USC §3161).
o
State Share -
Use/Lose. First 50 percent of funds remaining after sub-allocation must be
obligated within 120 days of apportionment, with the remaining 50 percent
obligated within one year of apportionment.
Bill provides for re-distribution of unobligated funds to other eligible
states, subject to a state’s request for an extension period.
o
Sub-allocation. Thirty (30%) percent of a state’s
apportionment must be sub-allocated within the state according to the Surface
Transportation Program formula.
Sub-allocated funds are exempt from the re-distribution requirement for
states of the first 50% of a state’s apportionment.
·
Federal Share:
Up to 100% of the total cost.
Capital Grants to Amtrak
The Act provides $1.3 billion for Amtrak, with $850 million for discretionary capital
grants and $450 million for capital
security grants. Not more than 60
percent of the discretionary grants may go towards Northeast Corridor
projects. No expenditure of these funds
may subsidize the operating losses of Amtrak, and priority will go to projects
that repair, rehabilitate, or upgrade railroad assets.
Federal Railroad Administration
High-Speed Rail Corridors and Intercity Passenger Rail Service
The Act provides $8
billion in discretionary grants to the states for high-speed rail corridor,
intercity passenger rail service, and congestion mitigation projects. Interim guidance on grant terms, conditions,
and procedures due from Secretary within 120 days of enactment. Federal share is up to 100 percent of the
total cost.
Federal Transit Administration
Transit Capital Assistance
The Act provides $6.9 billion total in grants,
including $5.5 billion using the
Urbanized Area Formula Grants program, $690
million using the Other Than Urbanized Areas program (with a 2.5% set-aside
for Indian reservations), and $690
million using the Growing States and High Density formula. The
federal share for eligible projects will be up to 100 percent. The
deadline for grantees to obligate funds is 180 days after apportionment for a
minimum of 50 percent of their funds.
·
State Share - Use/Lose. First 50
percent of funds must be obligated within 180 days of apportionment, with the
remaining 50 percent obligated within one year of apportionment. Bill provides for re-distribution of
unobligated funds to other eligible states and urbanized areas, subject to a
state or urbanized area’s request for an extension period and notice by the
Secretary to congressional appropriations committees justifying any extension.
Fixed Guideway Infrastructure Investment
The Act provides $750 million for fixed
guideway infrastructure investment distributed by formula. The
deadline for grantees to obligate funds is 180 days after apportionment for a
minimum of 50% of their funds. The
federal share for eligible projects will be up to 100 percent. The
“use/lose” terms for Transit Capital Assistance also applies here.
Capital Investment Grants
The Act provides $750 million in discretionary
grants to eligible New Starts and Small Starts projects that are already in
construction or in final design stages and could award contracts within 150
days.
Housing and Community Development
Public
Housing Capital Fund
The
Act provides $4 billion: $3
billion allocated to public housing authorities (PHAs) by formula for
capital projects, and $1 billion to
PHAs through competitive grants for priority investment projects. PHAs
shall give priority to capital projects that can award contracts based on bids
within 120 days from when funds are made available to the PHAs. All funds must be expended within three
years. HUD may waive most statutory or
regulatory provisions necessary to move the funds quickly except those for fair
housing, non-discrimination, labor standards, and the environment.
HOME
Investment Partnership
The
Act provides $2.25 billion in additional HOME funds allocated to states
according to the FY08 distribution formula for capital investments to help fill
financing gaps in low-income housing tax credit projects. Recipients must spend all funds within three
years after enactment of the Act. HUD
may waive most statutory or regulatory provisions necessary to move the funds
quickly except those for fair housing, non-discrimination, labor standards, and
the environment.
Homelessness Prevention Fund
The
Act provides $1.5 billion in formula funds to grantees for short-term
rental assistance, housing relocation and stabilization efforts. All funds must
be expended within 3 years of award.
Neighborhood
Stabilization Program
The
Act provides $2 billion in additional funds for this program authorized
by the Housing and Economic Recovery Act of 2008, awarded competitively to
states, local governments, non-profit entities or consortia to purchase and
rehabilitate foreclosed vacant properties and help create affordable housing
and stabilize neighborhoods. Grantees
must expend 50 percent of funds within two years of receipt, and 100 percent
within three years.
Community
Development Block Grant (CDBG)
The
Act provides $1 billion in additional CDBG funds for community and
economic development projects allocated to states and local governments
according to the FY08 distribution formula. Recipients shall give
priority to capital projects that can award contracts based on bids within 120
days from when funds become available to them. HUD may waive most
statutory or regulatory provisions necessary to move the funds quickly except
those for fair housing, non-discrimination, labor standards, and the
environment.
Wireless and Broadband Grants
USDA
– Rural Utilities Service
The
Act provides $2.5 billion in funds for loans, grants, and loan
guarantees for open access broadband infrastructure projects that serve rural
areas primarily. Priority in awarding these funds shall go to activities
that can begin promptly following enactment. Projects funded with money from
this account are ineligible for funding under the Broadband Deployment Grant
Program.
Department
of Commerce – Broadband Deployment Grant Program
The Act provides $4.7
billion: $4.35 billion available
until September 30, 2010 for competitive grants to increase broadband
deployment in “unserved and underserved areas,” of which $200 million is
designated to expand public computer center capacity and $250 million is to
encourage sustainable broadband adoption. These grants have an 80-20
match subject to a waiver of the grantee share. The bill also provides $350 million to the NTIA to fund a grant
program authorized last year (P.L. 110-385) to support efforts in states to
improve and inventory broadband communications and services, and to develop a
nationwide broadband inventory map.