By Larry Jones
September 29, 2008

By a vote of 52 to 42 on September 26, the Senate failed on a procedural vote to obtain the 60 votes needed to proceed to consideration of its version of the economic stimulus bill. This closes the door on the opportunity to approve a second economic stimulus bill before Congress adjourns at the end of September. As U.S. Mayor goes to press, the House was considering its version of the bill that Democratic leaders claim is necessary to address the economic downturn. The package is designed to create jobs mainly by funding large-scale infrastructure projects. Even if the House is successful in passing its version of the bill, it lacks the support it needs to clear the Senate and win final approval by White House.

Although the House and Senate economic stimulus bills differ, they call for increased support for many of the same programs. Both versions would extend unemployment benefits, increase funding for infrastructure projects, provide additional assistance to help states with Medicaid health costs, and add more funds for a number of other domestic programs.

Both versions of the economic stimulus package also include increases for a number of programs supported by the Conference. Highlights of key programs of interest to the nation’s mayors contained in the House version include $12.8 billion to improve safety and reduce traffic congestion on the nation’s aging highways and bridges; $3.6 billion in additional transit funds to purchase buses and equipment needed to expand public transportation; $1 billion to meet growing demands for public transportation due to higher gas prices; $500 million to assist Amtrak in making the necessary upgrades to tracks and stations to address the growing demand due to high gas prices; and $600 million for Airport Improvement Grants to improve safety and reduce delays at our nation’s airports.

The House bill also includes $1 billion for Public Housing for repair and construction projects; $500 million for Job Training to help Americans find and prepare for jobs; and $2.6 billion for Food Assistance to assist seniors, people with disabilities and very poor families with children with rising food costs.

The Senate version of economic stimulus package includes $490 million for Byrne grants to increase support for local law enforcement agencies; $10.8 billion for building and repairing highways, bridges, mass transit, airports, and Amtrak, which will create 384,000 jobs; $50 million for the Economic Development Administration to help local communities impacted by massive job losses; $500 million for the COPS program to hire 6,500 police officers; $600 million for Clean Water Systems, which would create 24,000 jobs; $2 billion for school construction that would create 32,300 jobs; and an increase in Job Training funds to provide 160,000 dislocated workers and youth with training and job search assistance.