[Congressional Record Volume 153, Number 84 (Tuesday, May 22, 2007)]
[Extensions of Remarks]
[Pages E1118-E1119]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   INTRODUCTION OF THE RURAL AMERICA JOB ASSISTANCE AND CREATION ACT

                                 ______
                                 

                          HON. JOHN M. McHUGH

                              of new york

                    in the house of representatives

                         Tuesday, May 22, 2007

  Mr. McHUGH. Madam Speaker, I rise today to introduce the Rural 
America Job Assistance and Creation Act, which is a comprehensive 
measure designed to address a host of issues identified as problematic 
for residents and businesses in my central and northern New York 
district and the rest of rural America.
  The need for this legislation, which I have introduced in each of the 
past three Congresses, has been reillustrated by a recent development 
in my district. Specifically, on May 14, 2007, the General Motors, GM, 
Corporation announced that it would phase out some 500 jobs at its 
Powertrain plant in Massena, NY. While such an unfortunate event would 
have a negative impact on any community, it is especially devastating 
for my constituents in St. Lawrence and Franklin Counties, as GM's $31 
million annual payroll served as a cornerstone to the local economy and 
will be difficult to replace.
  The GM situation in Massena particularly illustrates the need for two 
provisions of this

[[Page E1119]]

legislation. First, when GM made its decision regarding the Massena 
Powertrain plant, the company failed to notify me or any elected 
officials in advance. However, under the Rural America Job Assistance 
and Creation Act, companies that employ 100 or more workers would have 
to provide the impacted elected officials with 60 days' advance notice 
of a decision to reduce its workforce or close. This notice would serve 
two purposes: (1) to alert these officials to the situation and the 
impact it will have on workers and the community; and (2) to provide 
these officials with the opportunity to assist in determining if State 
and/or Federal resources are available and can be utilized to prevent 
closure or layoffs and the resulting loss of employment opportunities.
  Secondly, the GM situation in Massena also highlights the need for a 
provision in the Rural America Job Assistance and Creation Act that 
would exclude from gross income up to $25,000 of any qualified 
severance pay. Needless to say, it is often very difficult for 
employees who suffer layoffs or the shutdown of their place of 
employment, particularly in rural areas, to find new employment that 
provides a comparable income. While severance pay certainly provides 
affected individuals with a small sense of security and is without a 
doubt a helping hand in a time of great need, unfortunately, the 
recipients often lose a third of their severance pay to taxes because 
they are pushed into a higher bracket.
  Madam Speaker, this bill is also designed to help my district and the 
rest of rural America develop jobs, in the wake of plant closings and 
otherwise. For example, the Rural America Job Assistance and Creation 
Act would establish regional skills alliances to help identify needed 
skills and create and implement effective training solutions. In 
addition, the bill would also encourage cooperation between educational 
institutions and entrepreneurs who have innovative ideas but cannot 
afford the legal and consultant fees necessary to take their ideas from 
the drawing board to the production line or otherwise make them a 
reality.
  To increase international cooperation in the development of economic 
and job opportunities, the Rural America Job Assistance and Creation 
Act would also streamline the immigration visa procedures for H1-B 
professional specialty workers by requiring the submission of the H1-B 
labor condition application to the U.S. Department of Labor at the same 
time as the classification petition is submitted to the U.S. Department 
of Homeland Security. By reducing unnecessary delays in the processing 
of these visas, this provision would help facilitate the employment-
related travel necessary for border areas like my northern New York 
congressional district to further its symbiotic relationship with 
Canada and thereby create good jobs.
  Finally, the Rural America Job Assistance and Creation Act would 
expand the work opportunity tax credit to include both small businesses 
and individuals found in communities experiencing population loss and 
low job growth rates such as those in central and northern New York. 
Approximately 100 such communities would be so designated, subsidizing 
some 8,000 jobs in each area.
  Accordingly, I ask my colleagues to join with me to enact this 
important legislation. It not only would help my Massena constituents 
as they face the fallout of GM's decision, it also would enhance the 
economic opportunities available and quality of life throughout our 
great Nation.

                          ____________________