One of the controversial provisions of the stimulus package was the Buy America requirements. The provision requires that projects funded by the Act use iron, steel and manufactured goods produced in the U.S. However, the Act also provides that these requirements may be waived in limited circumstances:
when applying the provision would be inconsistent with the public interest
if the iron, steel and relevant manufactured goods are not produced in the United States in sufficient and reasonably available quantities and of a satisfactory quality
the inclusion of U.S.-produced iron, steel or manufactured goods will increase the cost of the overall project by more than 25 percent.
The Act also states that the Buy America requirements must be applied in a manner consistent with United States obligations under international agreements. Thus, the Buy America requirements may not apply if they are found to conflict with a trade agreement where the United States is obligated to extend preferential treatment to the goods of another country. The conference report says Congress anticipates that the Administration will comply with U.S. obligations under the WTO Agreement on Government Procurement and under U.S. free trade agreements and so that the Buy American requirement will not apply to least developed countries. China, India, and Brazil—which do not have trade pacts with the United States—are not considered least developed countries by the World Trade Organization.
Water Projects
Funding for water infrastructure in the economic stimulus bill will jump-start projects to repair and replace aging drinking water and wastewater systems, but utility and state officials say it is not enough to meet the country's needs. The law includes the following appropriations:
18 billion for clean water, flood control, and environmental restoration investments, including $1 billion for the Bureau of Reclamation to provide clean, reliable drinking water to rural areas and to ensure adequate water supply to western localities impacted by drought
$6 billion for local clean and drinking water infrastructure improvements
$1.28 billion to support $3.8 billion in loans and grants for needed water and waste disposal facilities in rural areas.
Additional Provisions
Homeland Security:
$2.75 billion for the Department of Homeland Security to secure the homeland and promote economic activity, including $1 billion for airport baggage and checkpoint security
$430 million for construction of border points of entry
$210 million for construction of fire stations
$300 million for port, transit, and rail security
$280 million for border security technology and communication
$240 million for the Coast Guard.
Corps of Army Engineers:
$4.6 billion in total added funding for the Corps of Engineers.
Science, Research and Development:
3 billion for the National Science Foundation, for basic research in fundamental science and engineering
$1.6 billion for the Department of Energy’s Office of Science, which funds research in such areas as climate science, biofuels, high-energy physics, nuclear physics and fusion energy sciences
$400 million for the Advanced Research Project Agency-Energy (ARPA-E) to support high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry
$1 billion for NASA, including $400 million to put more scientists to work doing climate change research.
Health Care
$19 billion to accelerate adoption of Health Information Technology (HIT) systems by doctors and hospitals, in order to modernize the health care system
$1 billion for a new Prevention and Wellness Fund
65% subsidy for the Consolidated Omnibus Budget Reconciliation Act (COBRA) premiums for up to 9 months.
COBRA provides certain former employees, retirees, spouses, former spouses, and dependent children the right to temporary continuation of health coverage at group rates by paying their employer the premium plus some administrative costs. Employers would take a credit against their payroll taxes for the amount of the subsidy. The employee would pay the employer the lowered 35 percent of premium. No additional federal money changes hands (unless the total subsidies exceed the employer’s payroll taxes) between the former employee, employer, and the government.
State Funding and Education:
$53.6 billion that comprise the State Fiscal Stabilization Fund, includes $40.6 billion to fund local school districts using existing funding formulas, which can be used for preventing cutbacks and layoffs, school modernization, or other purposes
$3 billion for School Improvement Grants. (The school improvement total is considerably more than had been included in either the House or Senate versions or the boost perhaps intends to compensate slightly for the elimination of school construction monies that the House had proposed.)
Housing and Communities
$2 billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties
$1 billion for the Community Development Block Grant program for community and economic development projects including housing and services for those hit hard by tough economic times
Job Training:
$4 billion for job training including formula grants for adult job training, dislocated worker job training, and youth services (including funding for summer jobs for young people).
Trade
Expansion of Trade Adjustment Assistance (TAA) Programs - significantly expands current TAA Programs. Among other things, it extends TAA to trade-affected services sector workers and workers affected by offshoring or outsourcing to all countries, including China or India. It increases training funds available to states by 160 percent to $575 million per fiscal year, creates a new TAA program for trade-affected communities, allows for automatic TAA eligibility for workers suffering from import surges and unfair trade, makes training, healthcare and reemployment TAA benefits more accessible and flexible. It reauthorizes all TAA programs (which expired December 31, 2007) through December 31, 2010.
For more information, contact Stephanie Salmon, Metalcasting Industry Government Affairs Washington Office, at ss@wafed.com or 202/842-4864.
Need Help Now?
Contact Us At The Washington Office
Tel: 202/842-4864 ssalmon@afsinc.org
