Economic Recovery

Our nation is in the midst of the worst economic crisis since the Great Depression, causing millions of people to lose their homes, their jobs, their life’s savings, and their hopes and dreams. The need for swift, deliberate action grows every day, and I was honored to join my colleagues in the House of Representatives on February 13, 2009 to pass the first dramatic new investment in our future since the creation of the interstate highway system a half-century ago.
 
The American Recovery and Reinvestment Act will create or save 3.5 million jobs, immediately cut taxes for 95 percent of American workers, and make unprecedented investments in our nation’s infrastructure. Through investments in unemployment benefits and food stamp benefits, this legislation provides immediate relief to the Americans who are suffering the most while also infusing money directly back into our economy. It also has unprecedented accountability and transparency measures to help ensure that taxpayer dollars are spent wisely and effectively—including no earmarked projects—and a new recovery.gov website allowing Americans to track the investments.

This jobs and economic recovery plan contains strategic efforts to help Marylanders, including:

• Creating or saving 66,000 jobs here in Maryland over the next two years;
• Providing a Making Work Pay tax cut of up to $800 for more than 2.2 million Maryland workers and their families, designed to start paying out immediately into workers’ paychecks, as well as tax cuts to spur businesses large and small;
• Transforming Our Economy With Clean, Efficient, American Energy and Innovation and Technology that will create more than 1 million  jobs;
• Lowering Health Care Costs and improving care by computerizing medical records, which will create hundreds of thousands of jobs, and helping those who cannot afford health care in these tough times;
• Modernizing Roads and Bridges to create jobs with an extra $431 million here in Maryland, along with other critical infrastructure like high-speed rail, the boldest investment since the creation of the interstate highway system a half century ago;
• Education for the 21st Century, modernizing schools and making college more affordable with improved Pell Grants for the 89,000 Pell Grant recipient here in Maryland and a higher education tax credit for 53,000 students in our state;
• Helping Workers Hurt by the Economy, including the nearly 175,000 Marylanders who are out of work, those who have lost their health care, and seniors; and
• Saving the Jobs of teachers, police officers, health care workers, and protecting the vital services they provide.

We are already witnessing the effects of this legislation in our district. Please click here to view a list of projects in our district.

Federal Bonding Assistance for Disadvantaged Business Enterprises

As a Senior Member of the Committee on Transportation and Infrastructure, it has been one of my highest priorities to ensure that the stimulus' investment in our economy will help address the disproportionate effect that our economic crisis has had on people of color. Under the leadership of Chairman Oberstar, I am pleased to report that the Committee shares this view.

As of August 2009, the national unemployment rate was 9.7 percent – but the rate of unemployment among Hispanic and Latino Americans was 13 percent while the unemployment rate among African Americans was above 15 percent.

To help ensure that disadvantaged business enterprises would be positioned to bid on stimulus-funded projects, I worked closely with Chairman Oberstar and the Chairman of the Appropriations Committee, Congressman Dave Obey, to direct $20 million of stimulus funding to provide bonding assistance for disadvantaged business enterprises.

While there are many Federal programs and statutory provisions that require the participation of small, minority-owned, and women-owned businesses in infrastructure construction projects, the inability of such businesses to receive bonding and related assistance often prevents them from submitting bids, particularly as prime contractors. Additionally, new businesses without established credit histories face significant challenges when they apply for financial support from traditional credit sources, particularly in this economic environment.

The $20 million in bonding assistance provided by the stimulus was directed to the U.S. Department of Transportation, which recently announced that it will be used to fund a DBE Bonding Assistance Program that will provide reimbursements to small and disadvantaged businesses for the bonding premiums and fees they incur when they compete for or perform work on stimulus-funded projects.

Please note that this funding must be used by September 30, 2010 – so it is imperative that disadvantaged businesses begin to submit their applications as soon as possible. If you are at all interested in this opportunity, I hope you will click here to learn more.

While there is no overnight solution to fix the fallout from the past eight years of poor economic policy, this comprehensive legislation is the first major step in restoring our nation’s economy and providing relief to the millions of Americans who are struggling with all of their might to stay above water. Although the road ahead of us is undoubtedly long, the Congress and the President have moved our nation miles ahead by passing this critical legislation.

First-time Homebuyer Assistance

On November 9, 2009, President Obama signed into law the Worker, Homeownership, and Business Assistance Act of 2009, which included an extension of the $8,000 first-time homebuyer tax credit.

The credit, which was set to expire on November 30 of this year, now may be applied to homes purchased before April 30, 2010, as long as the closing occurs by June 30, 2010. The definition of "first-time homebuyer" applies as long as you have not owned a home in the past three years.

Also included in the legislation is a $6,500 tax credit for homes purchased by long-time homeowners. If you have lived in your home consecutively for five of the last eight years, you may be eligible for the tax credit in order to "move up".

For home sales occurring after November 6, 2009, the income eligibility limits for both the $8,000 and the $6,500 tax credit are $125,000 for individuals, and $225,000 for married couples filing jointly.

Restrictions do apply; for example, homebuyers must attach a documentation of the sale to their income tax returns when claiming the credit. Additionally, if the home ceases to be your principal residence in the three years following the purchase, you must repay the credit to the Internal Revenue Service. Finally, the credits only apply to homes purchased for up to $800,000.

Further details can be found at the Internal Revenue Service website - http://www.irs.gov/newsroom/article/0,,id=204671,00.html. Please contact a qualified tax advisor or legal professional for advice and information unique to your situation.

Important Links:

Information on Stimulus Payments

Information on Tax Relief

COBRA Premium Reduction
Additionally, the American Investment and Recovery Act provides relief for certain recipients of COBRA health coverage. If you were involuntarily terminated from employment between September 1, 2008 and December 31, 2009, you are eligible for a 65% premium reduction. The premium reduction began on March 1, 2009 for plans that charge for COBRA benefits on a calendar month basis and will last for up to 9 months. For further details on the program, please visit the following websites:

U.S. Department of Labor’s Employee Benefits Security Administration:
(866) 444-3272

Internal Revenue Service:
(800) 829-4933

Frequently Asked Questions: