WASHINGTON, DC -- By a vote of 61-37, the U.S. Senate today took a critical first step toward jumpstarting the economy by passing the American Recovery and Reinvestment Act of 2009, which is estimated to provide approximately $865 million in federal aid for Rhode Island to create jobs and invest in the state's schools, roads, infrastructure, and other critical programs. At a time when 19,000 Americans are losing their jobs each day and a handful of job vacancies attract hundreds of applicants in Rhode Island, the Senate's $800 plus billion economic recovery plan will help save or create millions of jobs nationwide by making smart investments in America's long-term economic future.

U.S. Senator Jack Reed (D-RI), a member of the Appropriations Committee, issued the following statement:

"Passing this bill is a positive step forward. The American Recovery and Reinvestment Act will save and create jobs, provide targeted tax cuts to families and businesses, and help restore a sense of confidence and hope. My colleagues and I will work quickly and carefully to put this plan into action and get our economy back on track.

"This legislation is targeted at jobs, it is targeted at families, it is targeted at getting our economy moving again and allowing our communities to thrive again. It will put more money directly into the hands of hard working Americans and also provide tax breaks to businesses to encourage job growth.

"It is an injection of capital in the short term and a smart investment in the long term, in the future of the country, in giving states money to support local education programs and other local agencies. This bill invests hundreds of millions of dollars in putting Rhode Islanders back to work, educating our children, and rebuilding our infrastructure. Most importantly, it will help lay the foundation for future economic growth.

"This legislation marks the first step in a long process of rebuilding and reforming our economy. We have seen over the last eight years a deterioration of our markets, deficit spending, and an unfunded war. All of these policies have contributed to our present difficulties. They won't be reversed in a week or even months, but the first step is this legislation.

"As President Obama put it, the Recovery Act is only one leg of the stool. We have to also recognize that this action is integrally related to the financial markets, the banking system, and without increased consumer demand and increased consumer confidence they will fall further. I have held a series of Banking Subcommittee hearings over the last two years focusing on strengthening investor protections; ensuring the transparency of complex financial markets and products; and improving federal oversight of investment banks and securities firms and will continue to find new ways to implement meaningful economic reform," concluded Reed.

According to the Senate Committee on Appropriations and other sources, the American Recovery and Reinvestment Act of 2009 is estimated to provide approximately $865 million for Rhode Island, including:

Infrastructure and Science: $266.2 million
In order to help rebuild Rhode Island's infrastructure, this bill invests $266.2 million in putting people to work building and repairing roads, bridges, and public works.

Education and Job Training: $126.4 million
In order to compete in the 21st Century, this bill invests $126.4 million in ensuring Rhode Island has a well-educated workforce, capable of adapting to an ever-changing economic environment. Providing job training in new and expanding fields will help to lower the unemployment rate and help today's workers better compete in the global marketplace.

Preserving Rhode Island's Health Care System: $400 million
The bill establishes an $87 billion fund to help states maintain health insurance programs for the unemployed and many working families who lack health insurance. If Rhode Island meets certain requirements, as is expected, the state could see approximately $400 million to deal with increased budget pressures facing the Medicaid system.

Protecting the Vulnerable: $48.1 million
In order to help Rhode Island's most vulnerable citizens, this bill provides $48.1 million in immediate relief for children, low income families, and those hit hardest by the economic downturn.

Energy Efficiency: $15.9 million
This bill provides $15.9 million to help Rhode Islanders weatherize their homes, save on their utility bills, and invests in areas critical to the development of clean, efficient, renewable energy technologies.

Law Enforcement and Crime Prevention: $8.8 million
This bill provides $8.8 million to make Rhode Island's cities and towns safer by strengthening law enforcement efforts and providing support for crime victims.

Tax Relief and Unemployment Benefits for Rhode Islanders
According to the Senate Committee on Finance, the following are examples of tax provisions in this bill that will help Rhode Island businesses and families, create jobs, and get Rhode Island's economy moving:

• Up to $500 for individuals and $1,000 for married couples for the Making Work Pay Tax Credit
• $300 to Social Security beneficiaries, SSI recipients, and disabled veterans
• $2,500 for the American Opportunity Tax Credit (an increase in the tax credit for higher education and allowing the credit for four full years)
• Extended and increased Homebuyer Tax Credit to both help aspiring homeowners and stabilize plummeting home prices
• Extended Bonus Depreciation and Small Business Expensing through 2009, allowing businesses that make capital investments to immediately deduct one-half the cost. Small businesses can immediately deduct 100 percent of the cost of these investments
• $1.6 billion for grants to schools and hospitals for energy efficiency and combined heat and power system projects

According to the Department of Labor, Rhode Island could receive $23.6 million in new funding if Rhode Island fully enacts the Unemployment Insurance modernization incentives that the legislation would provide. The bill also protects over 26 million working families across the nation from the Alternative Minimum Tax, representing thousands of dollars in additional income taxes. According to the Congressional Research Service, 100,000 Rhode Islanders would be protected from the Alternative Minimum Tax in 2009.