Economic Recovery Package
House and Senate negotiators reached a deal on the final Economic Recovery Package yesterday (Wednesday) evening, although negotiations on some items have been ongoing today. Many details have not been released, but we have outlined below the best available information.
The plan includes: an important boost in SNAP/Food Stamp benefits; important expansions of the Child Tax Credit and Earned Income Tax Credit; additional funding for food assistance; an increase in unemployment benefits; and investments in early child care. In short, the package includes major investments that will stimulate the economy, and give help to low-income people struggling in this recession.
The House and Senate are poised for final votes as early as Friday.
ACTION NEEDED: Call your Representative and your Senators.* Urge them to vote “yes” and quickly pass the economic recovery package. Tell them the nation needs it.
* Call toll-free at 866-544-7573. The toll-free number is provided courtesy of the Service Employees International Union (SEIU). If the lines are jammed with calls, call their district offices. You can find these numbers on their Web sites, www.house.gov and www.senate.gov.
HIGHLIGHTS OF THE CONFERENCE REPORT:
- Includes $19.9 billion for increased SNAP/Food Stamp spending. Most of that goes to boosting benefits, which translates to an initial 13.6 percent increase in the value of the Thrifty Food Plan. (The increase phases out over time.) It is likely that this will begin with the April 2009 allotments. It suspends time limits on eligibility for jobless adults without dependents through FY 2010. There is also $295 million for SNAP/Food Stamp administrative costs, almost all of it to states. Of that, $4.5 million goes to USDA for oversight (FY 09 payments to flow to states no later than 60 days after enactment). The formula will be based on states' shares of SNAP/Food Stamp households in last 12 months (75 percent) and of SNAP/Food Stamp increases in last 12 months (25 percent).
- Includes $500 million for the Women, Infants, and Children (WIC) program, with $400 million to support anticipated increases in the caseload and $100 million for Management Information Systems (MIS).
- Provides $100 million for school food service equipment grants.
- Provides $5 million for the Food Distribution Program on Indian Reservations ( FDPIR) to allow for facility improvements and equipment upgrades.
- Provides other food assistance, including $100 million for Emergency Food and Shelter to help local community organizations provide food and shelter; $100 million for formula grants to states for elderly nutrition services including Meals on Wheels; and $100 million for The Emergency Food Assistance Program (TEFAP) to purchase commodities and $50 million for TEFAP administrative expenses.
- Provides help for the families of millions of children through an expansion of the refundable Child Tax Credit (allowing families to begin qualifying for the child tax credit when earnings go over $3,000).
- Expands the Earned Income Tax Credit by providing additional relief to families with three or more children and increasing marriage penalty relief.
- Provides $1.1 billion for Early Head Start and $1 billion for Head Start, which provide comprehensive development services to low-income infants and preschool children – thereby providing services for 110,000 additional infants and children. Because virtually all such children receive meals and snacks paid for by CACFP, almost all of these added children will receive these nutrition benefits under existing law.
- Provides $2 billion for the Child Care Development Block Grant to provide child care services to an additional 300,000 children in low-income families while their parents go to work. Many of these children will also get CACFP nutrition benefits under current law.
- 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.
- Gives a one-time extra payment of $250 to SSI recipients.
FRAC will update you as more details emerge.
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