Message from ARTUR DAVIS
7th District, Alabama
United States House of Representatives
Committee on Ways and Means
Committee on House Administration
I want to ensure that you are aware of the funding opportunities that have become available through the passage of the American Recovery and Reinvestment Act.
In an effort to make certain that all stakeholders have an opportunity to take full advantage of the opportunities presented through this legislation, my staff has prepared an overview of many of the elements of this legislation. Many of the provisions included in this package provide funding directly to the State of Alabama which will direct funds to support specific projects.
The State of Alabama has created a detailed website http://www.stimulus.alabama.gov/ to provide additional information on funding opportunities and to provide links to state agencies that will award funding.
I look forward to working with you to ensure that entities in the 7th Congressional District and
the State of Alabama are able to take full advantage of these opportunities.
Member of Congress
HIGHLIGHTS OF THE AMERICAN RECOVERY AND REINVESTMENT ACT
**Note: All dollar figures are Alabama-specific numbers unless otherwise noted**
HEALTHCARE & INCOME SECURITY
• Medicaid: Provides an estimated $850 million over the next two years in additional federal
matching funds to help the State Medicaid Agency maintain their Medicaid programs in the
face of massive state budget shortfalls.
• COBRA: Provides a 65% subsidy for COBRA premiums for up to 9 months for workers
affected by the recession.
• Unemployment Benefits: Continues through December 2009 the extended unemployment
benefits program (which provides up to 33 weeks of extended benefits) that is otherwise
scheduled to begin to phase out at the end of March 2009 – thereby helping an additional 3.5
million jobless workers. Increases unemployment benefits for 20 million jobless workers by
$25 per week, and encourages states to modernize their UI systems to keep up with the
changing workforce with expanded coverage.
• Stabilization Fund: Establishes a $730.1 million State Fiscal Stabilization Fund, including
$597.3 million to local school districts using existing funding formulas, which can be used
for preventing cutbacks, preventing layoffs, school modernization, or other purposes; $132.8
million for high priority needs such as public safety and other critical services, which may
include education and for modernization, renovation, and repairs of public school facilities
and institutions of higher education facilities.
• Head Start: Provides $12.4 million for Early Head Start and Head Start, which provide
comprehensive development services to low-income infants and preschool children.
• Child Care Development Block Grant (CCBG): Provides $38.5 million for the CCBG to
provide child care services to low-income families while their parents go to work.
• Title I: Provides $198.5 million for Title I grants to help disadvantaged kids reach high
academic standards – ensuring that in this period of tight state and local budgets these vital
services are maintained.
• IDEA: Provides $186.9 million for grants for IDEA (Special Education) to increase the
federal share of these costs, and prevent these mandatory costs from forcing states to cut
other areas of education.
• Education Technology: Provides $9.7 million to AL in Education Technology Grants for
computers, science labs, and teacher technology training.
• Higher education tax credit: Increases the higher education tax credit to a maximum of
$2,500. Additional detail provided under tax provisions.
• Pell Grant: Increases the maximum Pell Grant by $500, for a maximum of $5,350 in 2009
and $5,550 in 2010.
• Financing School Construction: Creates a new category of tax credit bonds for school
construction, repair and rehabilitation of public school facilities or for the acquisition of land
on which a public school facility will be constructed. Also provides for an extension and
increase in authorization for qualified zone academy bonds (QZABs) for state and local
governments in 2009 and 2010, which can be used for renovations, equipment purchases,
developing course material and training teachers and personnel at a qualified zone academy.
All Highway and Bridge Projects must be “ready-to-go” projects which can begin within 180 days.
Most of Alabama’s highway and bridge funding will go directly to the Alabama Department of
Transportation (AL DOT) which has developed a prioritized list of projects based on how quickly
projects can begin. Transit Funding will be allocated based on existing formulas.
TOTAL AL Highways and Bridges: $403,692,000
• Highways and Bridges-State $403,692,000
• Highways and Bridges-Cities and Counties $110,000,000
TOTAL AL Transit Capital Grants: $46,459,000
• Transit Capital Grants-Urban $26,609,000
• Transit Capital Grants-Rural $19,850,000
• Alabama Clean Water State Revolving Fund: $44.5 million to provide low-interest loans
to governmental entities for clean water and non-point source pollution control projects. To
be eligible for the program, the applicant must be a governmental entity with the authority to
generate revenue and to repay general obligation, revenue obligation, sales tax obligation, or
combination of these bonds. Alabama Department of Environmental Management (ADEM)
will be the direct recipients of these funds.
• Alabama Drinking Water State Revolving Funds: $19.6 million to provide low-interest
loans for infrastructure improvements to drinking water systems needed to achieve or
maintain compliance with the Safe Drinking Water Act. To be eligible for the program, the
applicant must be (1) a governmental entity with the authority to generate revenue and to
repay a general obligation, revenue obligation, sales tax obligation, or combination of these
bonds or (2) a nonprofit corporation with the authority to generate revenues and repay the
loan. ADEM will be the direct recipient of these funds.
• Rural Water and Waste Disposal Program Account: provides $1.38 billion (total) for the
cost of direct loans and grants for the rural water, waste water, and waste disposal programs.
Individual Tax Credits
• “Making Work Pay” Tax Credit: Refundable tax credit equal to 6.2% of income up to
$400/individual or $800/couple. Credit Received through a reduction in the amount of
income tax withheld from their paychecks. Credit is phased out at $75,000
AGI/individual or $150,000/couple. Credit is available for 2009 and 2010.
• One Time Tax Credit for Recipients of Social Security, SSI, Railroad Retirement,
Veterans Disability Compensation and Certain Federal and State Pensioners
ineligible for SS Benefits: The bill would provide a one-time $250 credit to these
• Earned Income Tax Credit (EITC): Increases in maximum EITC for families with 3
or more children from $5,028 to $5,656.50 for 2009 and increases the maximum for
2010. The bill also provides marriage penalty relief.
• Child Tax Credit: The bill would increase the eligibility and refundability of tax credit
in 2009 and 2010.
• “American Opportunity” Education Tax Credit: For 2009 and 2010 the bill would
provide a tax credit up to $2,500 of the cost of tuition and related expenses paid during
the taxable year. Taxpayers would receive a credit based on 100% of the first $2,000 of
tuition and related expenses paid during the taxable year and 25% of the next $2,000.
Credit would phase out at $80,000/individual and $160,000/couple.
• Refundable First-Time Homebuyer Credit: Would extend the first time homebuyer
credit included in the 2008 stimulus package. Refundable tax credit equal to an interest-
free loan equal to 10% of the purchase of a home (up to $7,500) by first-time
homebuyers. Applies to homes purchased between April 2008 and July 2009. This bill
would eliminate the repayment provision for first-time buyers who purchase homes after
1/1/09. Credit phases out at $75,000/individual and $150,000/couple.
• Vehicle Sales Tax Deduction: Allows a deduction of sales taxes paid on the purchase of
an automobile with a value of up to $49,500 between the effective date of the bill
through the end of 2009. Deduction is phased out for taxpayers with income between
$125,000 and $135,000 ($250,000 to $260,000 per
• Alternative Minimum Tax: Provides for a one year patch of the AMT.
Business Tax Credits
• Extension of Bonus Depreciation: For capital expenditures in 2009.
• Extension of enhanced Small Business Expensing: Until end of 2010, small
businesses can write-off up to $125,000 (indexed for inflation) of capital expenditures
phased out at $500,000.
• 5 Year Carryback of Net Operating Losses: Extends carryback from 2 years to 5
years for 2008 and 2009 for businesses with gross receipts of up to $15 million.
• Work Opportunity Tax Credit (WOTC) incentives to hire veterans and
State and Local Government Tax Incentives
• Build America Bonds: Provides a tax credit bond option for State and local
governments to elect to receive a direct payment from the Federal government equal to
the subsidy that would have otherwise been delivered through Federal tax credit bonds
issued in 2009 and 2010.
• Targeted Assistance to “Recovery Zones:” Provides tax-exempt bonds and tax-credit
bonds, to proceeds which can be used to invest in infrastructure projects in areas within a
State, city or county that have exhibited high unemployment, foreclosures, poverty or
general economic distress. Bonds would be allocated directly to States and large
municipal governments based on the number of jobs lost within that area.
• Emergency Assistance for Redevelopment of Abandoned and Foreclosed Homes:
provides $2 billion (total) to states, local governments and nonprofit entities. Grantees must
be in areas with the greatest number and percentage of foreclosures. These are competitive
grants for emergency assistance for the redevelopment of abandoned and foreclosed homes.
• Public Housing Capital Fund: provides $92.3 million to Public Housing Authorities to
supplement, and not supplant, expenditures from other federal, state or local sources of
funds independently generated by the grantee.
• Home Investment Partnership Program: provides $31.93 million. The State Housing
Credit Agencies will be the direct recipients of these funds to distribute to projects that have
received an award of low-income housing tax credits. Funding to the states will be based on
the percentage of HOME funds apportioned to each state for FY08.
• Community Development Fund: provides $13.4 million: $6.23 million in Entitlement
Grants, $7.2 million in non-Entitlement Grants to carry out the community development
block grant program under title I of the Housing and Community Development Act.
• Homeless Prevention Fund: provides $20.18 million for the provision of short-term or
medium-term rental assistance; housing relocation and stabilization services including
housing search, mediation or outreach to property owners, and others.
• Rural Housing Insurance Fund Program Account: provides $11.7 million (total) for
direct and guaranteed loans, including the cost of modifying loans, available from funds in
the rural housing insurance fund.
• Rural Community Facilities Program Account: provides $130 million (total) for the cost
of direct loans and grants for rural community facilities program.
• Weatherization Assistance: Would provide AL with $67.5 million to enable low-income
families to permanently reduce their energy bills by making their homes more energy
efficient. Also would increase the maximum assistance level per unit from $2,500 to
• State Energy Program: $48.6 million in grants to state to address the state’s energy
priorities and program funding to adopt emerging renewable energy and energy efficiency
• Energy Efficiency Block Grants: Provides funding to provide grants to local governments
to implement strategies to reduce fossil fuel emissions, to reduce total energy consumption
and to improve energy efficiency.
• Department of Energy Loan Guarantee Program: Provides additional funding for loan
guarantees for renewable energy projects, including cutting edge biofuels projects that use
technologies performing at the pilot or demonstration scale. Funds would be available for
projects that begin construction before 9/30/11.
• Renewable Energy Tax Incentives:
• Long Term Extension and Modification of Renewable Energy Production Tax
Credit: Bill would extend the placed in service date for 3 years (through 2013) for
open and closed loop biomass and waste to energy facilities.
• Temporary Election to Claim the Investment Tax Credit In Lieu of the
Production Tax Credit: Credit would enable ALL renewable producers to take a
30% investment tax credit in the year the facility was placed into service (in lieu of
the 10% production tax credit which is payable over 10 years). The credit would be
available for facilities placed into service in 2009 and 2010. Additionally, this bill
would enable producers taking advantage of the 30% investment tax credit to take a
one-time grant from the Department of Energy in the amount of the tax credit in lieu
of the credits which are not appealing in the current market.
• Clean Renewable Energy Bonds: Authorizes an additional $1.6 billion (total) in
clean renewable energy bonds to finance facilities that generate electricity from
renewable sources. Funding divided as follows: one third to qualifying state/local
government projects, one third public power provider projects, one third electric
• Qualified Energy Conservation Bonds: Provides an additional$2.4 billion (total) in
qualified energy conservation bonds for
• Distance Learning, Telemedicine, and Broadband Program: provides $2.5 billion (total)
for the cost of grants, loans, and loan guarantees for broadband infrastructure in any area of
the United States. At least 75% of the area to be served by a project receiving funds from
such grants, loans, or loan guarantees shall be in a rural area without sufficient access to
high speed broadband service to facilitate rural economic development as determined by the
Secretary of Agriculture.
• National Telecommunications and Information Administration (NTIA) Broadband
Technology Opportunities Program: provides $4.7 billion (total). Not less than $4.35
billion shall be expended of which (1) not less than $2 billion shall be available for
competitive grants for expanding public computer center capacity, including at community
colleges and public libraries; (2) not less than $250 million shall be available for competitive
grants for innovative programs to encourage sustainable adoption of broadband service.
• Broadband Technology Opportunities Program (Division B): see above. Will provide
grants to State or political subdivisions, nonprofits, and other entities including broadband
service and infrastructure providers to acquire equipment, construct, and deploy broadband
service related infrastructure and facilities that improve public safety broadband
communication services, ensure access to broadband service by community anchor
institutions, facilitate access to broadband service by low-income, unemployed, aged, and
otherwise vulnerable populations in order to provide educational and employment
opportunities to members of such populations.
• NTIA Digital-To-Analog Converter Box Program: provides $650 million (total) for
additional coupons and rela
ted activities under the program, including funding for education
and outreach, including grants to organizations for programs to educate vulnerable
populations, including senior citizens, minority communities, people with disabilities, low-
income individuals, and people living in rural areas, about the transition and to provide one-
on-one assistance to vulnerable populations, including help with converter box installation.
LAW ENFORCEMENT/ HOMELAND SECURITY
• Byrne/JAG Program: provides $31.3 million. ADECA will be the direct recipient of these
funds which will be allocated by formula to state and local law enforcement agencies to help
prevent, fight, and prosecute crime.
• Violence Against Women Prevention and Prosecution Programs: provides $3.5 million.
ADECA will be the direct recipient of these funds for grants to combat violence against
women, specifically the STOP Violence Against Women Formula Grant Program.
• Crime Victim Compensation: provides Alabama with $873,000 for compensation benefits
to crime victims.
• FEMA, Emergency Food and Shelter: provides $1.12 million to help local community
organizations provide emergency food and shelter.
• FEMA, Firefighter Assistance Grants: provides $210 million (total) for modifying,
upgrading, or constructing non-federal fire stations.
• FEMA, Disaster Assistance Direct Loan Program: provides loans to states for the non-
federal portion of cost-sharing funds, and community disaster loans to local governments
incurring substantial loss of tax and other revenues as a result of a major disaster.
• Commodity Assistance Program: provides $1.585 million to Alabama. The State
Department of Agriculture will be the direct recipient of these funds. The funds are to
provide emergency food assistance to food banks to fill emptying shelves.
• Agricultural Disaster Assistance program: provides $173 million (total) for the cost of
direct farm operating loans, including the cost of modifying any loans.
• Agricultural Disaster Assistance (Aquaculture): provides $50 million (total) to the
Department of Agriculture and Industries to provide grants to states to assist eligible
aquaculture producers for losses associated with high feed input costs during the 2008
calendar year. The state must demonstrate that it will: (1) use the funds to assist eligible
aquaculture producers; (2) provide assistance to the producers not later than 60 days after
the state receives the grant; and (3) submit a report to the Secretary within 30 days after
providing assistance showing the manner and process by which the assistance was provided.
Producers receiving assistance under this program would not be eligible for any other
assistance under the supplemental agriculture assistance program.
• Agriculture Research Service: provides $176 million (total) for work on deferred
maintenance at Agriculture Research Service facilities. Priority will be given to critical
deferred maintenance, to projects that can be completed, and to activities that can be
• Special Supplemental Nutrition Program for Women, Infants and Children (WIC):
provides $500 million (total). The State Department of Public Health will be the direct
recipient of these funds. Funds will be used to provide additional supplemental food
assistance to WIC recipients.
• Economic Development Administration, Economic Assistance Programs: provides $150
million (total). The Regional Economic Development Commissions will be a direct
recipient of these funds.
• Rural Business Program Account: provides $150 million (total).
• Leaking Underground Storage Tank Trust Fund: provides $200 million (total). ADEM
will be the direct recipient of these funds. These funds will be used for cleanup activities at
sites where no responsible party can be found.
• Hazardous Substance Superfund: provides $600 million (total). ADEM will be the direct
recipient of these funds. Funds will be used to clean up uncontrolled or abandoned
hazardous waste sites and to respond to accidents, spills, or other emergency releases of
pollutants and contaminants.
• Brownfields: provides $100 million (total). ADEM will be the direct recipient of these
funds. The funds will be available for direct funding for Brownfield assessments, cleanup,
revolving loans, and environmental job training. These will be competitive grants.