The statistics are alarming. Even more alarming is the fact that behind every number is a hard-working employee out of a job, a family facing an uncertain future, and a community under stress. Congress had to act swiftly to pass a new stimulus plan that will get our economy moving again and our people back to work. This is why I worked so hard to craft a bipartisan compromise that is targeted and effective and will help turn our troubled economy around, create jobs, and provide tax relief to struggling families.
As I conveyed to President Obama during our recent meeting at the White House, I had serious concerns with the $819 billion economic stimulus bill that had passed the House of Representatives, and with the Senate bill, whose cost had exceeded $900 billion. The bloated bills had become a Christmas tree for lawmakers to hang their pet projects and programs. Many were worthwhile but would do very little to help get people back to work and turn our economy around. They did not belong in an emergency stimulus bill but should instead be considered during the regular appropriations process. Throughout these negotiations, I was persistent in asking these fundamental questions: Will these provisions help get our economy on track? Will they create jobs? Will they help to save jobs? Will they provide tax relief that will put more money back in the pockets of consumers? I knew that if we were to develop a more targeted, timely, and effective bill, that would cost less and better boost our economy, Republicans and Democrats would have to work together.
I believe we have achieved our goal. Working closely with Senator Snowe and Senator Ben Nelson, a Democrat from Nebraska, we successfully eliminated $110 billion from the House and Senate-passed stimulus bills-bringing the final cost down to $787.2 billion. Our bill contains robust infrastructure spending, significant funding for state aid, and tax relief for low- and middle-income families and for small businesses. It is estimated to save or create 3.5 million jobs by:
• Making a significant investment in infrastructure to build and repair roads, bridges and highways, to upgrade water and sewer treatment plants, and to modernize and improve energy efficiency, including the electric grid. Maine, for example, will receive approximately $133 million for highway investments and more than $50 million combined for the Clean Water and Drinking Water State Revolving Funds.
• Providing a $106 billion investment in education including funds for special education to ease the burden on school districts and help them to retain support staff and teachers.
• Appropriating billions of dollars to assist school districts with high percentages of low-income families and more than $17 billion in Pell grant funding to help low-income students afford college. As a result of this bill, Maine students who qualify for Pell Grants will see their maximum award increase to $5,300 in 2009 and $5,500 in 2010.
• Establishing a $54 billion state fiscal stabilization fund to help states and local governments provide essential services.
• Increasing by $87 billion the federal share of Medicaid over the next 27 months. Maine is expected to receive $470 million from this fund that will help relieve pressure on our state budget and preserve the safety net by helping the state avoid cutbacks in health care coverage and services at the very time that the number of families needing help is increasing.
• Providing $5 billion in weatherization funds to make homes more energy efficient. Maine will receive $42.8 million for the Weatherization Assistance Program and $27.5 for the State Energy Efficiency Program.
In addition, the bill contains tax relief for low and middle-income families, and tax credits to encourage homeownership, and new car payments, and to help companies install new broadband service thus encouraging job growth in rural areas.
I also fought for tax incentives to help small-business, which provide the majority of jobs in Mane and throughout the nation.
The hard-working people of Maine and America did not cause this economic crisis, nor did their families or their communities. Congress had a responsibility to work together to achieve the right balance, the right size, and the right mix of tax relief and spending programs. Although far from perfect, this bill will provide tax relief, help to create jobs, and address the dire economic crisis our nation faces.