Comprehensive Economic Recovery Package Passed By House

Press Release

Today the House of Representatives passed The American Recovery and Reinvestment Act (H.R. 1), a comprehensive economic recovery package designed to jumpstart the economy, provide tax benefits for families and small businesses, and invest in infrastructure and innovation. Developed with the Obama Administration, this package will create 3.5 million new jobs, give 95 percent of working families an immediate tax cut, shore up the nation's aging infrastructure and help our country shift to green energy technology.

The stimulus measure is expected to pour $26 billion into California to build roads and bridges, and upgrade schools, and would create nearly 400,000 jobs in the state, the most in the country. Congressman Mike Thompson (D-CA) helped draft key energy tax provisions of the bill and voted in favor of the legislation, which passed the House by a vote of 246 to 183 and is expected to pass the Senate later today.

"This legislation will save or create 8,000 jobs in our district at a time when we really need them," said Congressman Thompson. "From one end of the district to the other, families are really struggling, and this legislation will make an immediate impact on their lives by cutting taxes, investing in our schools, roads and bridges, and keeping our police and fire stations open. With these targeted investments, we'll put people to work quickly and make our country more competitive over the long term."

H.R. 1 includes $287 billion in tax cuts for individuals and businesses, and $502 billion in carefully targeted investments in infrastructure, education, clean energy and healthcare. The legislation also includes key provisions to ensure that rural communities are not left behind and receive their fair share of assistance.

Some of the key job creating provisions of H.R.1 include:

• $110 billion to repair and modernize roads, bridges, transit and waterways, including $4.6 billion requested by Congressman Thompson for the Army Corps of Engineers;
• $116 billion for a Making Work Pay tax credit which will cut taxes for more than 95% of working families;
• $20 billion in targeted tax cuts for American businesses, large and small, to spur job creation;
• $50 billion in new funding and tax incentives to reduce our dependence on foreign oil and gas through clean, renewable technologies; and,
• $7.2 billion to expand broadband internet access in rural and underserved areas; and

An unprecedented level of transparency, oversight and accountability to ensure our tax dollars are spent wisely.

Congressman Thompson was able to secure several key provisions in the final stimulus bill that will make crucial investments in green energy technology and led efforts to provide critical funding for the Corps of Engineers. Under provisions authored by Congressman Thompson, state and local governments will be able to more easily finance the purchase of solar systems and will have access to $2.4 billion in new energy conservation bonds to reduce greenhouse gas emissions.

Congressman Thompson also authored key provisions to establish a new investment tax credit for facilities to manufacture green technologies in America rather than shipping those manufacturing jobs overseas. Additionally, the Thompson provisions will provide grants to incentivize businesses to invest in renewable technology today, rather than waiting until the economy improves.

"Creating good jobs here at home that will also help shift our country towards energy independence is one of the best investments we can make," said Congressman Thompson. "By encouraging the manufacturing of alternative energy technology and making it easier for consumers to use it, we are not only putting our economy back on track but we are also positioning ourselves to be a world leader in innovation and green energy."

The Senate is expected to pass the American Recovery and Reinvestment Act later today, and President Obama has indicated he will sign it into law as soon as possible.

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