Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

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Special Report: California Implications of

January 2009 Economic Stimulus Measures
House Appropriations Committee Spending Items --
January 23, 2009

House Committees began considering their portions of an $825 billion economic stimulus plan (H.R. 598) on
Wednesday, January 21, 2009, with the House Appropriations Committee taking the lead and reporting funding
under its jurisdiction by a vote of 35-22. The Appropriations Committee maintains jurisdiction over $358 billion
in discretionary spending in the bill.
Below is a summary of some of the major provisions in the Appropriations bill. As other Committees with
jurisdiction, such as Ways and Means and Energy and Commerce, report their sections of the bill, and as the
Senate takes action, the Institute will update its reporting.
In addition to the below narrative, the California Institute is preparing a spreadsheet detailing Appropriations
components of the stimulus package. The table will be available at
http://www.calinst.org/pubs/2009StimulusTable.shtml . A more basic pdf version of the table table is
now available at http://www.calinst.org/pubs/2009StimulusTable.pdf.
[Note that another significant portion of the bill was developed by the Energy and Commerce Committee
(largely energy provisions) and the Ways & Means Committee (tax and health care provisions). The California
Institute prepared a report detailing energy, health, and tax components of the stimulus package, at
http://www.calinst.org/pubs/2009stimulustax.shtml or at
http://www.calinst.org/pubs/2009stimulustax.pdf .]

Agriculture, Nutrition and Rural Development

Commerce, Justice, Science
Defense
Energy and Water
Homeland Security
Interior And Environment
Labor, Health and Human Services, and Education
Transportation, Housing and Urban Development
Military Construction
State Fiscal Stabilization Fund

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

Agriculture, Nutrition and Rural Development

Agriculture
The Department of Agriculture would receive $44 million in priority repair, maintenance, and improvement
projects, and the Agricultural Research Service (ARS) would receive $209 million in funding for critical deferred
maintenance work.
$245 million would be allocated to improve the Farm Service Agency’s existing information technology
systems.
The Natural Resources Conservation Service’s (NRCS) Watershed and Flood Prevention
Operations Program would receive $175 million to fully fund the costs of approximately 60 flood prevention and
water quality improvement projects and $175 million in funding to complete work on a substantial portion of the
flood plain easement and restoration projects already identified as necessary by the agency. $50 million of the
funding would be provided to fund watershed rehabilitation projects administered under the NRCS’ Watershed
Rehabilitation Program.
Nutrition Assistance Programs
The Supplemental Nutrition Assistance Program (SNAP) participants will receive a 13.6-percent benefit
increase for SNAP participants in the fiscal year 2009, to help match expected food inflation-rates. SNAP was
previously known as the Food Stamps program. An additional $300 million is provided to states to administer
the program and to help meet expected program demand increases.
The Afterschool Feeding Program for At-Risk Children and the Child and Adult Care Food Programs
(CACFP) were also expanded to include all states. CACFP currently only authorizes seven states to provide
suppers in after-school care programs, while other states (including California) are only able to serve snacks.
This proposal would allow all states, including California, to expand services to include an evening or weekend
meal to an identified population of children in need.
An additional $100 million in funds will be used to create and improve management information systems for
the Supplemental Nutrition Assistance Program (SNAP) in an effort to improve program delivery and to help
expand the implementation of the electronic benefit transfer capabilities.
Rural Development
This package would provide an additional $200 million in funding annually to the Rural Community Facilities
Program. The total program cost is $1.239 billion.
The Guaranteed Business and Industry Program would receive an additional $100 million in funding to
permit assistance to an additional 928 business. The total cost of the program is $2.013 billion. Funding is also
provided for the Rural Business Enterprise Grant Program.
The rural water and waste grant and loan programs, which serve rural areas with populations of 10,000 or
less, would receive an additional $1.5 billion for a total program level of $3.836 billion. The additional funding
will help support 3.4 million rural households with new or improved service.
The USDA would receive an additional $500 million for the USDA guaranteed home loan and direct housing
loan programs to help meet the demand caused by the credit crunch and needs of backlog of unfunded
applications on hand totaling $2.6 billion. The total cost of the USDA home loan programs would be $22.129
billion.
Rural Broadband Infrastructure Development program would receive $2.825 billion to promote and expand
“open access”broadband networks and to enhance the communication capabilities necessary for continued
economic growth, specifically in rural areas.

Commerce, Justice, Science

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

Economic Development Administration - Economic Development Assistance Programs

will receive $250 million in funding
National Telecommunications and Information Administration - The State Broadband Data and Development
Grants program will receive $350 million; Wireless and Broadband Development for Unserved and
Underserved Areas will receive $2.825 billion. $650 million will be provided for Digital-to-Analog Converter Box
Coupons.
National Institute of Standards and Technology - Scientific and Technical Research and Services will
receive $100 million; the Manufacturing Extension Partnership and Technology Innovation Program will receive
$100 million; $300 million will go to Research Science Building Construction Grants.
National Oceanic and Atmospheric Administration - Habitat and fisheries restoration will receive $400 million
State and Local Law Enforcement Assistance - Byrne Justice Assistance Grants (JAG)
will receive $3 billion. The Community Oriented Policing Services (COPS) hiring program will be provided $1
billion in funding, which will allow hiring about 13,000 new police officers for three years.
National Aeronautics and Space Administration - Science funding will be $400 million and Aeronautics
funding $150 million. Disaster assistance rebuilding efforts will get $50 million.
National Science Foundation - Research and related activities will receive $2.5 billion and Education and
Human Resources activities will receive $100 million. $400 million will also be available for construction and
development of major research equipment and facilities.

Defense
Sustainment, Renovation and Modernization of Defense Facilities - $4.5 billion
DOD Energy Research - $350 million.

Energy and Water

Water
Corps of Engineers - $4.5 billion is provided. Of the amount provided, $2
billion is allocated to the Construction account; $250 million to the Mississippi River and
Tributaries; $2.225 billion to Operation and Maintenance; and $25 million to Regulatory
Department of Interior
Bureau of Reclamation - Water and Related Resources will receive $500 million for capital improvements,
including funds to provide clean, reliable drinking water to rural areas and for water reuse and recycling
projects to ensure adequate water supply to western localities impacted by drought.
Energy
General provisions of the proposed package include:
- technical corrections to the formula for the Energy Efficiency and Conservation Block Grant Program
- amendments to EISA, Title 13 that eliminate the cap of 6 demonstration projects, and that substitute a grant
program for a reimbursable program to help expedite the timing of smart grid projects
- amendments to Title XVII of EPACT 2005 that create a temporary stimulus loan guarantee program for
renewable energy and electric power transmission projects; the subsidy cost is funded through appropriations
and the provision sunsets in 2011
- provisions which provide the Western Area Power Administration (WAPA) with $3.25 billion in borrowing
authority to expand transmission infrastructure to help connect renewable energy generation to the grid,

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

- increases to the income level criteria for Weatherization Assistance Grants from 150 percent of poverty to 200
percent of poverty; and increases the cap on dwelling assistance from $3,055 to $5,000,
- provisions which give the Department of Energy discretion to transfer up to 20 percent of the
amounts allocated for the “Energy Efficiency and Renewable Energy”, “Electricity Delivery and Energy
Reliability”, and “Advanced Battery Loan Guarantee” Programs within and between each of the programmatic
accounts.
A total of $2 billion would be allocated for renewable energy and energy efficiency research, development,
demonstration and deployment, including $800 million for projects related to biomass and $400 million for
geothermal activities and projects. $800 million would be used for programmatic activities, such as research
and demonstrations for additional renewable energy technologies and energy efficiency demonstrations for
industrial and commercial practices.
$500 million would be allocated to create a waste energy recovery incentive program, aimed at encouraging
the recovery of industrial waste heat and recycling it into useable heat and electricity.
$1 billion in grants would be made available to institutional entities to identify, design, and implement
sustainable energy infrastructure projects and grants for energy efficiency innovative technologies projects on
grounds and facilities of institutions.
The Weatherization Assistance Program would receive $6.2 billion to assist low-income families reduce their
energy costs by sending funds to the states to weatherize their homes. The eligibility for this program would be
expanded by increasing the maximum income from 150 percent to 200 percent of the poverty level and the
allowable level of investment per home from $3,055 to $5,000 to achieve greater energy savings. Outdated
formula grant factors have kept California’s share of the weatherization program below 5% of the U.S. total
The Energy Efficiency & Conservation Block Grant Program would receive $3.5 billion to assist states, local
governments and Indian tribes in implementing strategies to reduce fossil fuel emissions.
The State Energy Program (SEP) would receive $3.4 billion to provide grants to states to address their
energy priorities and to fund programs to adopt emerging renewable energy and energy efficiency
technologies. California’s share of SEP is less than 5%.
The Transportation Electrification program would receive $200 million to help transition the transportation
sector towards electrification.
The Energy Efficient Appliance Rebate and Energy Star programs would receive an additional $300 million
in federal funds to increase program effectiveness and to encourage the states to adopt similar programs.
Funding in the amount of $400 million would be allocated through the Clean Cities Program to establish an
Alternative Fuel Vehicles Pilot grant program to encourage the use of plug-in electric drive vehicles or other
emerging electric vehicle technologies. This grant program would provide up to 30 geographically dispersed
project grants, and recipients would include state governments, local governments, metropolitan transportation
authorities, air pollution control districts, and private or nonprofit entities.
$1 billion would be allocated to help promote a new generation of vehicles by creating a grant program to
support the manufacturing of advanced vehicle batteries. $1 billion would also be allocated to the Advanced
Battery Loan Guarantee Program, which would support $3.3 billion in loans to manufacturers of advanced
vehicle batteries and battery systems produced in the United States.
The Smart Grid Investment Program would receive $4.5 billion to support research, development, pilot
projects, and federal matching funds aimed at developing a modern electric grid, enhancing grid security and
grid reliability.
Funding in the amount of $500 million would be allocated for loans to institutional entities for identifying,
designing and implementing sustainable energy infrastructure projects and grants for energy efficiency
innovative technologies projects on grounds and facilities of institutions.
A new, temporary $8 billion loan program would provide loan guarantees through September 30, 2011 for
proven renewable technologies and transmission technologies. The program would allow the subsidy cost of
the loans to be made through appropriations.

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

$2.4 billion in funding would be allocated to provide for carbon capture and sequestration (CCS) technology
demonstration projects.
$2 billion would be allocated to support improvements to DOE laboratories and scientific facilities to provide
the foundation for research and development efforts. Within this amount, $400 million would be included for the
Advanced Research Project Agency.
Funding in the amount of $500 million would be allocated to accelerate nuclear waste cleanup at sites
contaminated as a result of the Nation’s past nuclear activities.
Small Business Administration
Business Loans Program Account - Small Business Capital Availability will be funded at $430 million. Of the
$430 million total, $426 million is for credit subsidy costs and $4 million is for administrative costs. The new
authorities include: guarantees of up to 95 percent of small business loans; SBA loans to secondary market
broker-dealers; refinancing of existing small business loans; SBA underwriting, loan closing, funding, and
servicing; refinancing of community development loans under the SBA 504 program; and simplification of the
maximum leverage limits and aggregate investment limits required of Small Business Investment Companies.

Homeland Security
U.S. Customs and Border Protection - $100 million will be provided to upgrade or replace non-intrusive
cargo inspection technology. $150 million will go to construction and modernization of land ports of entry
facilities.
Coast Guard - Hazardous Bridge Alteration, Repair, and Removal will receive $150 million.
Federal Emergency Management Agency - the Emergency Food and Shelter Program will receive $200
million.

Interior And Environment

Bureau of Land Management - $325 million is provided for the restoration and maintenance of the
infrastructure under the Bureau’s jurisdiction and to support habitat restoration and hazardous fuels reduction
projects.
U.S. Fish & Wildlife Service - $300 million is provided for deferred maintenance and capital improvement
plan projects.
National Park System - $1.700 billion is provided for deferred maintenance and infrastructure projects.
Environmental Protection Agency - The Superfund Remedial Clean-up Program will get $800 million; the
Leaking Underground Storage Tank (LUST) Enforcement and Clean-up Program will receive $200 million. The
Clean Water State Revolving Fund will receive $6 billion, and the Drinking Water State Revolving Fund will get
$2 billion. Brownfields competitive grants will receive $100 million. Diesel Emissions Reduction Act (DERA)
Grants and Loans will be funded at $300 million.
U.S. Forest Service - $650 million is provided for Capital Improvement and Maintenance. Wildfire Hazard
Reduction activities will get $850 million.

Labor, Health and Human Services, and Education

Labor
$4 billion would be allocated to state and local workforces in the form of both discretionary grant programs
and formula grants. $500 million would be provided for adult employment services; $1.2 billion would be
provided for youth employment services; $1 billion would be provided for dislocated workers for training and re-
employment services. $500 million would be provided to respond to worker dislocations through national

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

emergency grants. $50 million would be provided to expand the YouthBuild program. $750 million would be
provided for a new program of competitive grants for worker training, $500 million of which would be
designated for projects that prepare workers for careers in the energy efficiency and renewable energy
industries specified in the Green Jobs Act of 2007.
The Community Service Employment for Older Americans program would receive $120 million to provide
grants to public and private nonprofit organizations in order to subsidize part- time work in community service
for low-income seniors.
$500 million would be allocated for State Employment Service and Re-employment Services Grants.
The Department of Labor Worker Protection and Oversight would receive $80 million.
$300 million would be allocated to the Job Corps, a program designed to help train at- risk-youth.
Health
Community Health Centers (CHCs) Health Care Services would receive $500 million. $1 billion would be
awarded through competitive grants or supplements to existing CHC programs and awards.
$600 million would be allocated for training for primary care physicians and nurses.
$1.5 billion would be provided for renovation and repair of university research facilities through a competitive
application process.
$1.5 billion in funding will be allocated for biomedical research supported by the National Institutes of Health
(NIH).
The National Institute of Health would receive $500 million for campus modernization.
$1.1 billion would be appropriated to the Agency for Healthcare Research and Quality for Comparative
Effectiveness Research.
The Low-Income Home Energy Assistance Program (LIHEAP) would receive $1 billion to help low-income
households and seniors pay for home heating and cooling assistance.
The Child Care and Development Block Grant (CCDBG) would receive $2 billion to support quality child
care services for low-income families.
Head Start/Early Head State would receive $2.1 billion to provide education, health, nutrition, and
development services to low-income children.
The Community Services Block Grant (CSBG) would receive $1 billion to support employment, food,
housing, health, and emergency assistance to low-income families and individuals, the homeless, and the
elderly.
The Compassion Capital Fund would receive $100 million to provide grants to faith-based community
organizations who serve low income communities.
The Nutrition Service programs would receive $200 million provide formula grants to States for nutrition
services to the elderly.
The economic recovery bill provides $2 billion to jumpstart the investment in health information technology.
$900 million would be provided to help address pandemic flu and to support biomedical advanced research
and development and cyber security.
$3 billion would be allocated to the Prevention and Wellness Fund.
Education
$13 billion would be allocated for Title I Grants to local educational agencies (LEAs) provide supplemental
education funding, especially in high-poverty areas, for programs that provide extra academic support to help
raise the achievement of students at risk of educational failure or to help all students in high-poverty schools
meet challenging State academic standards. California’s share of Title I programs has declined recently to
approximately 12 percent.
$100 million in funds would be allocated to support school construction in local educational agencies.

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The Enhancing Education through Technology program would receive $1 billion to support State, district,
and school efforts to integrate technology into curricula in order to improve teaching and learning.
The Education for Homeless Children and Youth program would receive $66 million for formula grants to
States to assist schools and districts with providing services for homeless children and youth.
The Credit Enhancement for Charter School Facilities program would receive $25 million to provide
assistance to help charter schools meet their facility needs.
The Teacher Incentive Fund (TIF) program would receive $200 million for competitive grants.
The IDEA Part B, Grants to States program would be allocated $13 billion to provide formula grants to
assist the states in meeting the excess costs of providing special education and related services to children
with disabilities. California’s share of IDEA State Grants is typically less than 11 percent. The Grants for Infants
and Families program would be allocated $600 million to provide formula grants to the states to assist them in
implementing coordinated systems of comprehensive programs and making early intervention services
available to children with disabilities aged birth through 2. California has received a somewhat larger share of
Infants and Families IDEA funding, approximately 12 percent.
The Vocational Rehabilitation (VR) State Grants program would receive $500 million to support VR services
through formula grants to States.
The Department of Education would receive $200 million through the Independent Living Program for three
separate programs: Independent Living State Grants, Centers for Independent Living, and the Services for
Older Individuals Who Are Blind program.
$15.636 billion would be appropriated for new Pell Grants, and an additional and mandatory $1.474 billion
would be appropriated to address the mandatory Pell Grant shortfall for the 2009-2010 award year. The
Student Aid Commission, which administers a number of Federal student aid programs and policies, including
the Pell Grant program, would receive $50 million.
$490 million would be provided for College Work-Study.
The Teacher Quality State Grants program would be allocated $100 million.
$250 million would be allocated to the Department of Education to support efforts to expand Statewide Data
Systems.
$14 billion would be allocated for school modernization, renovation and repair. $6 billion would be allocated
to institutions of higher education for modernization, renovation and repair. The amount of money students
and their families can borrow through the Federal Stafford Loan Program would be increased by $2,000.
Additionally, the Special Allowance Payment, which, under current law, is indexed to the Commercial Paper
rate, would instead be indexed to the London Interbank Offered Rate for one quarter to provide stability in the
student loan system.
AmeriCorps programs would receive $200 million.

Transportation, Housing and Urban Development

Department of Transportation
Although the bill provides deadlines for using or losing the grants awarded, different deadlines are given for
different transportation programs. For information on deadlines for specific programs, go to:
http://transportation.house.gov/Media/File/Full%20Committee/20090122/SSM.pdf .
Federal Highway Administration - Highway Infrastructure Investment will receive $30 billion.. Funds are to be
distributed by formula, with a portion of the funds within each State being suballocated by population areas. Set
asides are also provided for: Indian reservation roads; park roads and parkways; on-the-training programs
focused on minorities, women, and the socially and economically disadvantaged; a bonding assistance
program for minority and disadvantaged businesses; and environmentally friendly transportation
enhancements.

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Within the $30 billion provided, the following suballocations are made:
- Federal Aid Highway Formula - $29.35 billion
- National Park Roads - $250 million
- Indian Reservation Roads - $300 million
- On the job training - $20 million
- DBE bonding assistance - $20 million
- Administrative funding - $60 million
Capital Assistance Intercity Passenger Rail Service - $300 million will go to the Capital Assistance to States
– Intercity Passenger Rail Service.
Amtrak Capital Grants - $800 million is provided.
Federal Transit Administration - Transit Capital Assistance funding is $6 billion.
Fixed Guideway Infrastructure Investment - $2 billion
Capital Investment Grants/New Starts - $1 billion
In a House Transportation and Infrastructure memo on the transportation section of the stimulus, the
Committee sets out a number of examples of “shovel-ready” projects that could be funded under the bill. The
following California projects are mentioned as examples
Passenger rail:
- California Capital Corridor Joint Power Authority has $10 million in projects in the Capital Corridor between
San Jose, Sacramento, and beyond.
- CALTrans has more than $342 million in inner city passenger rail projects that can be obligated within 90
days, $258 million that can be obligated within 90 to 120 days, and $88 million within 120 and 180 days.
Department of Housing and Urban Development
Public and Indian Housing - The Public Housing Capital Fund will receive $5 billion
Elderly, Disabled, and Section 8 Assisted Housing Energy Retrofit - $2.5 billion
Community Development Block Grants - $1 billion
Neighborhood Stabilization Program - $4.19 billion
Home Investment Partnerships Program - The HOME Program will receive $1.5 billion.
Self-help and Assisted Homeownership Opportunity Program - The SHOP Program will get $10 million
Emergency Shelter Grants - $1.5 billion
State Fiscal Stabilization Fund - $79 billion

Military Construction
Department of Defense Base Closure Account 1990 will receive $300 million in funding for cleanup activities
at closed installations dating back to the 1988 BRAC round.
International Commissions
International Boundary and Water Commission, United States and Mexico - Repair and rehabilitation projects
of the water quantity program will receive $224 million.

State Fiscal Stabilization Fund

The bill provides $79 billion for a State Fiscal Stabilization Fund in order to provide fiscal relief to the States

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Calif Institute: January 23, 2008: California Aspects of January 2009 Economic Stimulus Package - House Appropriations Version

to prevent tax increases and cutbacks in critical education and other high priority services over the next two
years.
Of the funds provided each year, one-half of 1 percent is reserved for the outlying areas; $12.5 million is
reserved for the Secretary of Education for administration and oversight, including program evaluation, and
$7.5 billion is reserved for State Incentive Grants. The remaining funds ($64 billion) are to be allocated to the
States, of which 61 percent is to be allocated based on school-aged population and 39 percent is allocated
based on total population.
California houses 12.6% of the nation’s school-aged population and 12.1% of the total population. As such,
the state’s share of these funds would be 12.4% or approximately $7.9 billion.
The provisions controlling use of the fund include that the states shall use at least 61 percent of the funds to
support elementary, secondary, and higher education. These funds must first be used by States to restore
State aid to school districts under the primary State K-12 education funding formula and to institutions of higher
education to FY 2008 levels, to the extent feasible given available State Stabilization Funds. Any remaining
funds shall be allocated to school districts based on the formula under title I of the Elementary and Secondary
Education Act. For each fiscal year, the Governor may use up to 39 percent of the funds for public safety and
other government services, which may include assistance for elementary and secondary education and public
institutions of higher education.
The bill also authorizes up to $325 million each year for an Innovation Fund to support
awards by the Secretary of Education to recognize States, local educational agencies, or schools
that have made significant gains in closing achievement gaps.

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