[Congressional Record (Bound Edition), Volume 154 (2008), Part 16]
[Senate]
[Pages 22174-22177]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             STIMULUS BILL

  Mrs. MURRAY. Mr. President, as all of us are aware, J.P. Morgan has 
agreed to buy Washington Mutual, which is based in my home State of 
Washington. I have been in touch with J.P. Morgan and with WaMu about 
their plans, and I have been assured that the transition will go 
smoothly and that Washington Mutual's banking customers will not see 
any interruption in service. And that is good news.
  It is, of course, still too early to know the impact of the failure 
of WaMu, the Nation's largest thrift, will have on local jobs, but it 
is further evidence to me that the economic crisis has spilled over 
into our communities.
  I am very saddened that it is having an impact on families and our 
economy, and yet it is another sign that we must find a bipartisan 
solution now.
  We are working together quickly to reach an agreement. We have 
rejected the President's $700 billion blank check because it did not 
ensure oversight or protection for our taxpayers. But Democrats and 
Republicans in the Senate are working with the House Democrats, the 
Treasury, and the Fed to come up with a solution that keeps this crisis 
from hitting more communities. We are hopeful that the House 
Republicans will come to the table and work with us on a solution that 
protects American taxpayers.
  As we do this, I firmly believe we must also offer the American 
people a hand and help get our economy going in communities across this 
country.
  We now have an opportunity today to help millions of struggling 
families who are grasping for a lifeline as this economy sustains blow 
after blow. Long before this economic crisis rippled across our 
financial system, middle-class families were already reeling under the 
impact of failed policies that were implemented by President Bush and 
backed by John McCain, and it is critical that we act now to help those 
families, those small businesses, State and local governments get back 
on their feet. The bill I am hoping we will vote on shortly will do 
just that.
  This bill brings security to seniors who are facing a stack of 
medical bills they cannot afford to pay and offers help to families who 
have seen the value of their homes drop below the amount they owe. It 
ensures that the most vulnerable Americans can continue to put food on 
their table and keep a roof over their heads. It creates jobs at a time 
when billions of workers have been laid off and billions more are 
worried that their job is going to be next.
  The Bush-McCain economic philosophy of ``hands off'' has done its 
damage. It is time that we now put the interests of the American people 
first again.
  This bill I hope we will vote on shortly will do just that. I wish to 
take a few minutes this morning to underscore the importance of what 
that bill will do.
  First of all, dropping home values and dwindling business revenues 
have put our State governments under extraordinary financial stress at 
a time when they can least afford it. As a result of the White House's 
failed policies, Republican and Democratic Governors across the country 
are now facing drastic cuts in services from health care to education 
to law enforcement, and they are looking and asking for relief from 
Washington.
  Already, State-supported health clinics and hospitals are closing, 
schools are pushing more and more students on fewer teachers, and fully 
trained police officers are being asked to hand in their badges because 
their departments can no longer afford to keep them on the beat.
  This bill will allocate about $20 billion to help our States continue 
to provide the services on which our citizens depend.
  Next, this package puts workers on the job immediately by providing 
$8 billion for highway projects in every one of our States. As chairman 
of the Appropriations Subcommittee on Transportation, Housing and Urban 
Development, I have been watching with dismay as the construction 
sector of our economy has endured hundreds of thousands of layoffs over 
the last several months.
  Construction jobs play a critical role in our economy. They provide a 
living wage that enables those families to keep food on their tables. 
But the construction industry is now facing its highest unemployment 
rate in 13 years.
  A couple of months ago, an estimated 783,000 jobless laborers, 
carpenters, plumbers, pipefitters, and other tradesmen were looking for 
work wherever they could find it. With that in mind and watching that 
happen, I helped to work to craft a transportation and housing 
infrastructure package that is in this bill that addresses our most 
critical needs.
  It requires that we spend the money fast so that we will see an 
immediate impact on our economy in every one of our communities. Every 
State across this Nation has a highway, transit, or airport maintenance 
project that is ready to go to construction, but they lack the money to 
buy the rebar or purchase the timber or order the concrete or even pay 
the workers.
  This bill we will be considering will allow those projects to get up 
and running right now when we desperately need those jobs. This funding 
will create more than 278,000 family-wage jobs in a sector that has 
taken it on the

[[Page 22175]]

chin over the last year, and it does it fairly and it does it 
responsibly.
  This bill requires those highway dollars be spent according to the 
formula that was established in our SAFETEA-LU highway law. There are 
no earmarks, no special projects. States have to use these dollars 
within 90 days.
  Now, all of us have heard about the increasing demand for public 
transportation as gas prices have gone through the roof. For example, 
Amtrak, our Nation's railroad, continues to set records now for its 
ridership. Well, the bill we are considering makes urgently needed 
investments in Amtrak and mass transit. It provides $2.35 billion in 
funding to improve and expand our bus and rail systems, including $350 
million to repair railcars and make other necessary improvements to the 
Amtrak network. Most importantly, that will put another 70,000 
Americans back to work.
  The bill also includes $400 million for capital projects at our 
Nation's airports and $44 million to modernize our Nation's shipyards 
to make them competitive and efficient. It provides money to ensure 
that Americans who rely on public housing will continue to have a roof 
over their heads. It will help address a growing problem in our 
communities--renters who have lost their homes because their landlords 
were foreclosed on. This bill includes $200 million to help those 
tenants find immediate shelter and long-term housing. It includes $250 
million so our public housing authorities can rebuild those vacant 
units and fill those units with needy tenants.
  Finally, this bill will increase benefits for those jobless Americans 
who, at a time when unemployment is at the highest since 2003, need to 
know they can keep food on their tables. Our economy has bled jobs 
every single month this year. Hundreds of thousands of workers are 
wondering how they are going to pay their mortgages or pay for their 
food or their heat.
  The jobless rate now stands at 6.1 percent across the country, and it 
is worse in those States where manufacturing and auto industries have 
been faltering for years. This bill reaches out to those families by 
extending unemployment benefits by just 7 weeks across the country and 
13 weeks in States where the jobless rate is the highest. And it 
invests in our workforce by helping those laid-off workers search for a 
new job or earn skills so they can go back into the job market and be 
competitive.
  It also helps our teenagers get job experience and helps them find 
long-term employment. I want our colleagues to know teenagers are among 
the hardest hit by the economic crisis today. Almost 20 percent of our 
teenagers are unable to find a job, and the number is even higher among 
minorities. So it is critical that we enable these young people to get 
work experience now. Because if they lose out, they are less likely to 
move into a career later. Teens without jobs are more likely, as we all 
know, to turn to crime or gangs in these difficult times, and that is 
going to cost our communities millions in law enforcement and lost 
productivity.
  Mr. President, I ask unanimous consent for 3 additional minutes.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  Mrs. MURRAY. Mr. President, this bill helps support part-time jobs 
after school, paid internships, and community service jobs for older 
youth. Those programs will pay off in the long run.
  I have talked about a few of the programs in this package which I 
believe are a critical shot in the arm to help our economy, and it is 
not going to come a moment too soon. The economic crisis we are facing 
is a direct result of failed policies by this President, this 
administration, in the long run.
  We are hearing now we need to bail out Wall Street. Well, this 
package before us will help the average citizen across our country get 
the security they need as they face this troubling crisis. I urge my 
colleagues to work with us to get to a vote and send a message across 
the country that we in the Senate and the Congress stand behind them, 
the working families in this country.
  I yield the floor.
  The ACTING PRESIDENT pro tempore. The senior Senator from Montana is 
recognized.
  Mr. BAUCUS. Mr. President, the noted economist John Kenneth Galbraith 
once wrote:

       There are two kinds of economists in the world: Those who 
     don't know the future, and those who don't know that they 
     don't know the future.

  In that sense, we are all economists now. We are all uncertain about 
our economic future. What we do know is that the stakes for our 
economic future are high, and we do know the economy is doing poorly 
right now.
  During the last 8 months, more than 600,000 people lost their jobs. 
Housing prices have been falling. Last month, the median home sales 
price fell 9\1/2\ percent. That is the largest decline since 
recordkeeping began in 1999. The experts say we have not yet hit 
bottom.
  Last month, there were more than 300,000 foreclosures. That is a 12-
percent increase from the previous month and a 27-percent increase from 
the year before.
  Consumer confidence is low. Last December, the Conference Board's 
Index for consumer confidence was above 90. Now it is below 57. Last 
month, retail sales fell by three-tenths of a percent.
  In this downturn, Congress acted relatively early. In February, on a 
bipartisan basis, we passed an economic recovery bill and included in 
that bill was a tax rebate that put money in people's pockets. Lots of 
people spent that money, and the second quarter gross domestic product 
was larger than it otherwise would have been. But almost all those 
checks have now been sent and spent, and the economy is still in bad 
shape.
  We need another economic recovery package, and that is what this bill 
would provide. This bill includes help for workers who have lost their 
jobs. It includes a further expansion in the number of weeks for 
unemployment benefits and much more.
  In June, Congress passed an extension of the number of weeks of 
unemployment benefits. That extension provided that those who had 
exhausted their regular 26 weeks of benefits would become eligible for 
an additional 13 weeks of benefits. We tried to add in a provision for 
another 13 weeks for those in high-unemployment States, but some of our 
colleagues and the President opposed that provision so it was dropped 
in conference.
  In August, unemployment hit 6.1 percent. That is the highest level in 
5 years. Well, here we are in September and the economy is still 
struggling. In fact, it is in worse shape. It is not easy to find a job 
that pays well. In October, for example, it is anticipated that 775,000 
workers will exhaust the 13 weeks of additional benefits we provided in 
June. Another 363,000 workers will exhaust these benefits in November 
or December. That is a total of more than a million workers.
  This bill provides for an extra 7 weeks of benefits in all States, 
and then it would make right what we could not do earlier this year, 
which is provide an additional 13 weeks of benefits for individuals who 
live in States where unemployment is higher than 6 percent. At the 
moment, that is 18 States.
  The bill will also help areas that have been hit by Federal 
disasters. Under this bill, there would not be a waiting-week penalty 
when State-extended unemployment benefits kick in during times of 
disaster. This bill will provide much needed help for overburdened 
State unemployment systems. We are a society that cares about all its 
people. In hard economic times, giving additional weeks of unemployment 
benefits to people who cannot find a job is clearly the right action to 
take.
  But there is another reason providing extra weeks of unemployment 
benefits will help stimulate the economy. People who are unemployed 
lose the income from their jobs. They generally don't have the income 
they need. So if they receive more money, they are likely to spend it; 
hence, unemployment benefits. When these unemployed workers spend their 
money, the folks who create the goods and services they

[[Page 22176]]

buy will need more workers. Those workers will spend the earnings they 
get. The cycle goes on. Economists call this the multiplier effect.
  The chief economist and cofounder of Moody's is Mark Zandi. He 
estimates that for every dollar of new unemployment benefits, the 
economy will grow by $1.64. Compared to other options to stimulate the 
economy, this option has a high bang for the buck.
  At times such as these, we need to extend the number of weeks of 
unemployment benefits. To help strengthen our economy, we also need to 
provide fiscal relief to State governments.
  The economy of a State has a major effect on the state government's 
budget. When a State's economy weakens, the State government's revenues 
generally fall off. In addition, as unemployment increases and incomes 
decline, more people become eligible for assistance programs like 
Medicaid. And that increases the demand for State spending.
  Almost all of the States have balanced budget requirements. During a 
time of economic weakness, when revenues drop and the need for 
expenditures increases, States may have to raise taxes or cut other 
spending in order to keep their budgets balanced. Unfortunately, that's 
precisely the wrong fiscal policy.
  If a State raises taxes, it reduces the purchasing power of its 
residents and firms. And that can lead to further economic decline.
  Reductions in State spending also lower the purchasing power of those 
persons or firms that would receive the State funds.
  Unfortunately, the current economic weakness is pressing many States 
to either raise taxes or cut spending. According to the Center on 
Budget and Policy Priorities, 30 States had to take actions to reduce 
their budget deficits for fiscal year 2009, which began on July 1 of 
this year. And of these 30 States, 13 are facing additional budgetary 
shortfalls that appeared after they enacted their budgets. These 30 
States are facing about $52 billion of shortfalls. If States raise 
taxes or cut spending by that much, it would place a significant drag 
on the national economy.
  During the last economic downturn, Congress increased the Federal 
matching rate for the Medicaid program by about 3 percentage points for 
five quarters. This freed up $10 billion for the States so that they 
did not have to cut Medicaid benefits. And that helped States to avoid 
cutting other expenditures or raising taxes. Most economists thought 
that this fiscal assistance measure for the States worked well.
  In February, the Finance Committee reported out an economic recovery 
bill that included State fiscal assistance in the form of an increase 
in the Medicaid matching rate. Unfortunately, that provision was not 
agreed to on the Senate floor.
  But the fiscal situation of the States is now worse than it was at 
the beginning of the year. And so, we should try to help the States. So 
this bill includes State fiscal relief in the form of an increase in 
the Medicaid matching rate.
  This bill contains an across-the-board temporary increase of 4 
percentage points in the Federal Medicaid matching rate. That would 
provide every State with much needed help. At a time of unprecedented 
fiscal crisis, I think that every State deserves this level of help.
  These are historic economic times. We are all uncertain about the 
economic future. The stakes are high.
  Let us not be found wanting. Let us act to bolster the economy's 
recovery. And let us vote to advance this bill.
  I yield the floor, and I suggest the absence of a quorum.
  The ACTING PRESIDENT pro tempore. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mr. BYRD. Mr. President, I ask unanimous consent that the order for 
the quorum call be rescinded.
  The ACTING PRESIDENT pro tempore. Without objection, it is so 
ordered.
  The senator from West Virginia is recognized.
  Mr. BYRD. Mr. President, I rise today in support of the Reid/Byrd 
economic stimulus package. Over the past week, congressional leaders 
have been working with administration officials to craft a bailout 
package for Wall Street. But if we are going to bail out Wall Street, 
we also need to help Main Street. The President's failed fiscal 
policies have resulted in higher unemployment, hardship in coping with 
rising food costs, higher energy costs, and increased dependence on 
foreign oil.
  If the President thinks that a $700 billion bailout for Wall Street 
is good for America, he should certainly support a $56 billion 
investment program to create jobs on Main Street.
  The unemployment rate now stands at 6.1 percent, the highest rate 
since September 2003. The unemployment rate is up 1.4 percentage points 
since last August. The U.S. economy has lost jobs every month this 
year, a total of 605,000 jobs. The stimulus package extends 
unemployment benefits by 7 weeks in all States and another 13 weeks in 
high unemployment States.
  Food prices have increased by 7.5 percent this year after increasing 
4.9 percent in 2007. In order to help low-income individuals cope with 
rising food prices, the stimulus package temporarily increases Food 
Stamp benefits by 10 percent and includes $450 million for the Women, 
Infants, and Children--WIC--program, which would allow 625,000 women 
and children to receive benefits. $50 million is included for food 
banks, $30 million for the commodity supplemental food program, and $60 
million for senior meals programs, providing 18 million more meals to 
seniors.
  There are consequences for failing to invest in America. Bridges fall 
into rivers. Roads and subways are congested to the breaking point. 
FEMA cannot respond to a major disaster. Fuel prices go through the 
roof.
  This stimulus package includes $10.8 billion for building and 
repairing highways, bridges, mass transit, airports, and AMTRAK, 
creating 384,000 jobs; $50 million for the Economic Development 
Administration to help communities impacted by massive job losses due 
to corporate restructuring; $500 million for the COPS program to hire 
6,500 police officers; $600 million for clean water systems that would 
create 24,000 jobs; and $2 billion for school construction that would 
create 32,300 jobs.
  Twenty-nine States are facing a $52 billion shortfall in revenues in 
their fiscal year 2009 budgets, resulting in cuts in health care, 
education, and other programs. The stimulus package includes $19.6 
billion to reduce the States' share of Medicaid costs by increasing the 
Federal share by 4 percent.
  Energy prices have increased by 22.4 percent in 2008. This stimulus 
bill includes major investments in promoting energy independence and a 
clean environment, including funds for advanced battery research, for 
local governments to improve energy efficiency, for environmental clean 
up, and weatherizing homes.
  Over 22 percent of the world's energy supply is under the Arctic ice 
cap. The Russian President has stated that Russia should unilaterally 
claim part of the Arctic, stepping up the race for the disputed energy-
rich region. We are not going to go along with that. No. Hell no. 
Russia has a fleet of 20 heavy icebreakers and is nearing completion of 
the first of their newest fleet of nuclear-powered icebreakers in an 
effort to control energy exploration and maritime trade in the region. 
Thanks to the Bush administration, the United States has only one 
functioning heavy polar icebreaker, and it has only 6 years left of 
useful life. Shame. Mr. President, $925 million is included for the 
Coast Guard to provide what the Navy and the Air Force call, ``an 
essential instrument of U.S. policy'' in the region.
  Funding is included to promote safety and energy efficiency in public 
housing, implement provisions of the recent housing law, give housing 
assistance to tenants displaced by foreclosure, and fund FBI 
investigations of fraud in the mortgage market.
  To promote education and job training, $2 billion is included for 
school repairs, $36 million for homeless education, and $400 million 
for the secure

[[Page 22177]]

rural schools program. Job training funds would provide 160,000 
dislocated workers and youth with training and job search assistance.
  Mr. President, $1.2 billion is included for the National Institutes 
of Health. America's small businesses, the lifeblood of our economy, 
face an ever-tightening credit market in the wake of struggling 
financial markets. The stimulus provides $205 million to support $16 
billion in reduced-fee loans to small businesses, delivering needed 
relief to small businesses on Main Street.
  I urge Senators to vote for this bill to send a message to the White 
House that Main Street matters.
  I ask unanimous consent that information relating to rule XLIV of the 
Standing Rules of the Senate be made a part of the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

         DISCLOSURE OF CONGRESSIONALLY DIRECTED SPENDING ITEMS

       The Constitution vests in the Congress the power of the 
     purse. The Committee believes strongly that Congress should 
     make the decisions on how to allocate the people's money.
       As defined in Rule XLIV of the Standing Rules of the 
     Senate, the term ``congressional directed spending item'' 
     means a provision or report language included primarily at 
     the request of a Senator, providing, authorizing, or 
     recommending a specific amount of discretionary budget 
     authority, credit authority, or other spending authority for 
     a contract, loan, loan guarantee, grant, loan authority, or 
     other expenditure with or to an entity, or targeted to a 
     specific State, locality or congressional district, other 
     than through a statutory or administrative, formula-driven, 
     or competitive award process.
       For each item, a Member is required to provide a 
     certification that neither the Member nor the Senator's 
     immediate family has a pecuniary interest in such 
     congressionally directed spending item. Such certifications 
     are available to the public on the website of the Senate 
     Committee on Appropriations (www.appropriations.senate.gov/
senators.cfm).
       Following is a list of congressionally directed spending 
     items included in the Senate recommendation discussed in this 
     report, along with the name of each Senator who submitted a 
     request to the Committee of jurisdiction for each item so 
     identified. Neither the Committee recommendation nor this 
     report contains any limited tax benefits or limited tariff 
     benefits as defined in rule XLIV.

                                     CONGRESSIONALLY DIRECTED SPENDING ITEMS
----------------------------------------------------------------------------------------------------------------
           Account                    Project              Funding                        Member
----------------------------------------------------------------------------------------------------------------
                            SUBCOMMITTEE ON FINANCIAL SERVICES AND GENERAL GOVERNMENT
 
GSA.........................  District of Columbia,        $346,639,000  The President, Senators Lieberman and
                               DHS Consolidation and                      Collins
                               development of St.
                               Elizabeths campus.
SBA.........................  Veterans Business                $600,000  Senators Bond, Kerry, Levin, Snowe, and
                               Resource Centers.                          Stabenow
----------------------------------------------------------------------------------------------------------------
                                  SUBCOMMITTEE ON ENERGY AND WATER DEVELOPMENT
 
Corps of Engineers--          In response to             $1,500,000,000  Senator Landrieu
 Construction.                 Hurricane Katrina,
                               levee construction
                               and repair, State of
                               Louisiana.
----------------------------------------------------------------------------------------------------------------
                                         DEPARTMENT OF HOMELAND SECURITY
 
Under Secretary for           District of Columbia,        $120,000,000  The President, Senators Collins and
 Management.                   DHS Consolidation and                      Lieberman
                               development of St.
                               Elizabeths campus.
----------------------------------------------------------------------------------------------------------------

  Mr. REID. Mr. President, has my friend completed his statement?
  Mr. BYRD. Yes. I thank the majority leader.
  Mr. REID. I join in the statement of the distinguished chairman of 
the Appropriations Committee, former majority leader and minority 
leader, assistant leader, secretary--no one has a more astounding and 
accomplished record in the Senate than Senator Robert Byrd of West 
Virginia.
  Mr. President, this will be the last time this year we will be able 
to vote on an economic recovery package. The plan we vote on today will 
provide targeted investments that will help working people now, not 
weeks or months from now. The dollars we invest in this legislation 
will come right back to our economy by creating jobs, rebuild our 
crumbling infrastructure and help small businesses grow.
  With 605,000 jobs lost this year alone, this legislation extends 
unemployment benefits by 7 weeks across our country and by 13 weeks 
States with particularly high unemployment rates.
  With States across America facing budget shortfalls as revenue dries 
up, this legislation provides funds to prevent State services like 
health care and education from deteriorating.
  We invest in energy efficiency and clean energy programs to help 
Americans switch to cleaner energy sources that will cost less as oil 
prices continue to reach record highs.
  We invest in our crumbling infrastructure, which will not only help 
small and large businesses but will create nearly 400,000 good jobs.
  We help Americans who are at risk of losing their homes by supporting 
the Federal Housing Administration, providing tools to stop mortgage 
fraud, and funding legal assistance for foreclosure prevention.
  This legislation also invests in job training, health care and small 
businesses to give our working Americans and our economy a desperately 
needed boost.
  As I have said before, Members of Congress from both parties will 
continue working as long as it takes to resolve the bailout 
legislation.
  But we do not have to wait until that bill is passed and implemented 
to help struggling American families and businesses. I urge all my 
colleagues to support these wise investments in the places and people 
that need help the most.

                          ____________________