By Ed Somers
February 2, 2009

Senate Economic Recovery Bill Contains Most USCM Priorities - Support Needed for Floor Passage

By Ed Somers

The Senate version of the Economic Recovery Plan (S. 1) was approved by the Senate Appropriations and Finance Committees on January 27, and is on its way to the floor the week of February 2.

The Senate bill contains major victories in four key areas identified by the Executive Committee of the Conference of Mayors and sent to Congress last week.

First, the Energy Efficiency and Conservation Block Grant (EECBG) is funded at $2.1 billion, with an additional $2.1 for EECBG competitive grants.

Second, the bill contains $10 billion for local areas under the Surface Transportation Program - up from the $7.6 billion in the House bill. The Senate bill also contains $5.5 billion for competitive grants to states and local governments for priority road, highway, public transit, rail, and port infrastructure of metropolitan, regional and, national significance.

Third, the bill provides $1 billion for the COPS program and waives the $75,000 federal funding cap.

Fourth, in the area of drinking water and waste water funding, the Senate bill provides assistance through principal forgiveness or negative interest rate loans, both of which would significantly boost local spending capacity on water and sewer. It also provides for 15 percent of the financial assistance to be used for green infrastructure applications.

The one major disappointment in the Senate bill is that it contains no funding for the Community Development Block Grant (CDBG). USCM has championed this program throughout the economic recovery process, and the House bill contains $1 billion for CDBG. USCM plans to press hard to make sure that at least $1 billion for CDBG is included in the final legislation sent to President Obama.

During a USCM Leadership conference call January 28, USCM President Miami Mayor Manny Diaz urged his colleagues to reach out to their Senators and stress the need for quick passage of the Senate bill.

House Adds $3 Billion for Transit

Prior to floor passage January 28, the House approved an amendment supported by the Conference of Mayors, adding $3 billion for mass transit. The amendment adds $1.5 billion for transit new starts, and $1.5 billion for transit formula grants. This brings total transit funding to $12 billion in the House.