02.09.09

Maria's Monday Memo

  1. Washington State Kids Win "Fair Share" of CHIP  
Last week, I joined Governor Chris Gregoire to see President Barack Obama sign a reauthorization of the Children Health Insurance Program (CHIP) that would provide healthcare coverage to Washington state’s uninsured children. According to the Congressional Research Service, this bill will preserve coverage for more than 13,500 Washington children currently enrolled in CHIP. Additionally, it will reach 55,000 kids who are eligible for CHIP, but are not enrolled in the program.
 
As a member of the Senate Finance Committee, I made sure that Washington state received its fair share of federal funding to provide 78,000 uninsured Washington children with the health care they need. The new rules will provide Washington with $94 million in CHIP funding, which is $50 million more than the state was able to use last year. Washington got $79.9 million under the old system, but had to give back almost $35 million last year because we did not have the fair share fix that I secured in the new rules. At a time when Washington families are struggling with rising costs of healthcare and rising unemployment causing a loss of employee-sponsored healthcare, we can provide a signal of hope and a source of relief. With my commitment to the health and future of our children, this law will bring our nation one step closer to providing quality, affordable healthcare for all Americans.
 
  1. Cantwell Joins Local Women's Groups to Applaud Signing of Lilly Ledbetter Act Into Law  
Last month, I had the honor to vote in favor of the Lilly Ledbetter Fair Pay Act, the first bill President Obama signed into law. The Lilly Ledbetter Act closes the gender pay gap in this country by reversing a Supreme Court decision that has kept women from pursuing pay discrimination claims. The Lilly Ledbetter Act makes it tougher for employers to pay discriminate on the basis of race, sex, color, national origin, religion, age, or disability.
 
This legislation is one cornerstone of a broader commitment to address the needs of working women who are looking to us to not only ensure that they're treated fairly, but also to ensure that there are policies in place that help women and men balance their work and family obligations without putting their jobs or their economic stability at risk.
 
  1. Washington State to Receive Increased Medicaid Funding
 
Last week, I successfully fought to provide Washington state fiscal relief in the Senate Finance Committee's economic recovery package currently being considered by Congress. Through FMAP, the Federal Medical Assistance Percentage, or the federal government's share of state expenditures for most Medicaid services, Washington state will receive more than $2.2 billion in Medicaid relief.
 
Medicaid is a critical safety net for over one million Washingtonians currently enrolled in the program. It is the economic foundation of our health care infrastructure. As Washington state is grappling with tough budget choices during this national economic crisis, the increased Medicaid funding will to help sustain health programs at a time when it might otherwise be forced to make cut essential sources of health care coverage.
 
  1. Plug-In Amendment to Create New Green Manufacturing Jobs For Washington State
Last week, my bipartisan amendment to the American Recovery and Reinvestment Act to create new green manufacturing jobs and provide tax relief to consumers buying new plug-in vehicles passed the Senate by a vote of 80 to 17.  Plug-in vehicles are a win-win-win opportunity, they save consumers money at the pump, they reduce our foreign oil dependence, and building them in America secures our place in the largest industry of the 21st century.  As we look for ways to reinvigorate our economy and create new, high-paying jobs, we must also provide businesses the certainty they need in the tax code to make investments now.  We need to take advantage of new technologies that break the link between oil and our cars and trucks, and we must invest in our grid and take it from a two-lane dirt road to a four-lane superhighway.
 
My amendment was based on legislation I authored with Senators Hatch (R-UT) and then-Senator Obama (D-IL) on June 14, 2007.  We worked closely with automakers, battery manufacturers, and utilities to develop a multi-tiered tax incentives strategy designed to accelerate the domestic development, manufacturing, and sale of a full range of plug-in electric drive vehicles including pure battery electrics, extended range electrics, plug-in hybrid electrics, and plug-in fuel cell vehicles.  Last October, we enacted the first of the bill, consumer tax credits up to $7,500 for the purchase of plug-in electric passenger for the first 250,000 U.S.-manufactured vehicles.  The American Recovery and Reinvestment Act doubles the number of eligible vehicles to 500,000.
 
The short- and long-term economic opportunity for electrifying our transportation system is enormous.  According to a recent report by McKinsey & Company, the total market for electric vehicles in North America, Europe, and Asia is forecast to reach $80 to $120 billion by 2030.
 
  1. Cantwell Increases Safety Net for Washington State Workers and Families Struggling with Unemployment
At a time when our economy is teetering and unemployment figures continue to sky rocket, I successfully secured an additional 33 weeks of unemployment benefits to certain workers in Washington state who have exhausted their rights to regular unemployment compensation benefitsin the American Recovery and Reinvestment Act. Also, individuals receiving unemployment insurance could receive an additional $25 a week.  Currently, there are more than 136,000 Washingtonians receiving unemployment benefits.  More than 90,000 people applied for unemployment benefits in December of 2008, which is a 75 percent increase from a year ago.
Washington’s current unemployment rate is 7.1 percent.  Columbia, Stevens, Lewis, Cowlitz, and Grays Harbor Counties all had unemployment rates over 11.0 percent in December 2008.
In addition to extending the temporary emergency unemployment compensation program through December 31, 2009 and creating an additional, federally-funded $25 weekly benefit to individuals receiving unemployment compensation, the package provides incentive payments for states that modernize their programs.
 
  1. Cantwell Works to Keep Funding Flowing to Affordable Housing Developments
As an obligation to ensure affordable housing opportunities to all Washingtonians, I successfully included a proposal in the American Recovery and Reinvestment Act to increase private capital that’s needed to build affordable housing.  The amendment I proposed, would stabilize the low-income housing tax credit program by attracting new private investors, thus helping states raise additional funds for the construction of affordable housing options.
 
Due to the current state of the economy, the reduction in capital dedicated to affordable housing has been dramatic.  In 2008, the amount of equity capital raise to fund affordable housing dropped by half, from $9 billion in 2007 to about $4 billion in 2008.  This drop in capital translates directly into lost jobs.  In 2007, according the National Association of Homebuilders, the housing credit program financed the development of around 120,000 homes, creating about 180,000 jobs. In 2008, the program financed only around a third as much housing, thereby costing the economy perhaps 60,000 jobs.
 
  1. Senate Economic Recovery Package Includes Cantwell’s Program Supporting Trade Affected Communities
 
Last week, I successfully reached a compromise with the Senate Finance Committee to reauthorize and expand the Trade Adjustment Assistance (TAA) program and was later approved by the Senate as an amendment to the economic stimulus package.
 
The new TAA program provides extended income support and training benefits for workers who lose their jobs because of increased imports or factory shifts to certain countries. It also increases training funding to $575 million, extends coverage to workers whose firms shift production to countries with which the U.S. does not have free trade agreements, and ensures automatic eligibility for TAA benefits for workers suffering from unfair trade and import surges.
 
  1. Washington State Could Receive $3 Billion to Invest in Infrastructure, Support Small Businesses and Create Nearly 80,000 Jobs
Congress is currently considering the American Recovery and Reinvestment Act of 2009 that could bring as much as $3 billion to Washington state and create nearly 80,000 jobs.  In addition to increased Medicaid funding and unemployment benefits, the package also includes funds that could be used to clean up Hanford; funds to increase the Bonneville Power Administration’s borrowing authority; and, funds for job training and education.
 
In Washington, the American Recovery and Reinvestment Act would:
  • Create or save 79,700 jobs over the next two years.  Jobs created will be in a range of industries from clean energy to health care, with more than 90 percent in the private sector.
  • Provide a making it work tax cut of up to $1,000 for 2.45 million workers and their families. 
  • Provide small businesses with access to credit.  Increasing access to credit will enable small businesses to continue operating and grow, and create thousands of jobs.
  • Increase funding for environmental cleanup.  An estimated $1.8 billion could be used for clean up at Hanford.
  • Increase Bonneville Power Administration’s borrowing authority.  Increasing BPA’s borrowing authority will allow them to meet future demand and adopt new types of renewable energy sources.  An estimated 50,000 and ancillary green jobs, and allow 4,700 megawatts of new renewable resources to come online in the next two years.
  • Make 67,000 families eligible for a new American Opportunity Tax Credit to make college affordable.  By creating a new $2,500 partially refundable tax credit for four-years of college, this plan will give 3.8 million families nationwide, and 67,000 families in Washington state, new assistance for college.
  • Offer an additional $100 per month in unemployment insurance benefits to 404,000 workers in Washington who have lost their jobs, and provide extended unemployment benefits to an additional 44,000 laid-off workers.
  • Provide funding to modernize at least 138 schools in Washington.
  1. Senate Democratic Hispanic Task Force Members Announced For 111th Congress
Last week I became a member of the Senate Democratic Hispanic Task Force. The Task Force brings to the forefront the priorities of the Hispanic community and fosters relationships between Senators and Hispanic leaders throughout the nation.
 
The Hispanic Task Force was founded in 1989 to promote strong partnerships between the Hispanic community and Senate Democrats. Each year, the group hosts events and meetings that bring together Democratic Senators and Latino leaders to discuss federal policies. This year, the Senate Democratic caucus will carry on the fight to improve opportunities for Latinos and work with their colleagues in the House of Representatives to ensure that issues important to the Latino community are heard in Congress.
 
 
 
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