News Releases
ArticlesStimulus Agreement Delivers for America’s Children
2/13/2009
WASHINGTON, DC – Today, Members of the United States Congress announced an agreement on the American Recovery and Reinvestment Act, the highly publicized economic recovery package. The House and Senate versions of the legislation have been reconciled and a conference report was recently issued reflecting the agreement between the two chambers.
First Focus, a bipartisan children’s advocacy organization, previously expressed serious disappointment over the compromise legislation passed in the Senate. Today, the organization lauded the final agreement as a victory for America’s children. The conference agreement provides approximately $142 billion for America’s children, including key funding for programs such as Head Start, school modernization, and improvements to the Child Tax Credit. President Bruce Lesley released the following statement:
“This agreement is a clear victory for our nation’s children. We are pleased to see over $140 billion invested in programs and policies that benefit children and families who are struggling in today’s economy. The conferees and President Obama should be praised for working to restore portions of funding previously cut in the Senate, including resources for school construction, food stamps, as well as other health and education priorities.
“Paramount among these provisions is improvements to the Child Tax Credit, a critical tax policy that provides resources directly to low income families who will use them in the economy immediately. Infusing federal dollars into low income families who are most likely to spend them is an effective economic stimulus that also keeps our children out of poverty, saving money in the long term. We are grateful that the conferees have recognized the importance of this program to children and families.
“The inclusion of an increase in federal payments for Foster Care and Adoption Assistance was also critical. These resources provide significant fiscal relief to states and are vital to help them meet the needs of vulnerable children and families during a recession. Moreover, we are pleased to see that conference report strategically meets the needs of homeless students through increased resources and a timely allocation of funds through the Education for Homeless Children and Youth program. In addition, the agreement provides critical funding for the Social Services Block Grant, essential investments in nutritional assistance programs, and eliminates unnecessary cost-sharing barriers for low-income Native American children. Each of these investments will simultaneously provide relief for the nation's low-income families while immediately stimulating our economy.
“We are thrilled and grateful that the House and Senate have agreed to restore much of the $50 billion to programs that specifically help America’s children. Indeed, in a time of such economic instability for America’s families, investing in programs such as Head Start, school construction, food stamps, and prevention programs are not only immediately simulative but are also essential to ensure every American child has a shot to achieve the American dream. Right now, low-income families are struggling to make ends meet, child poverty is on the rise, and unemployment is skyrocketing. This agreement addresses the adverse impacts of this crisis by placing a greater priority on assistance for children and families in need, providing effective stimulus while keeping kids from falling into poverty.”
The conference agreement contains funding that benefits children totaling $142.2 billion. This includes:
• State Fiscal Stabilization Fund/School Modernization. The compromise merges the two items and provides $45 billion for local school districts, to help keep local school districts afloat, saving jobs in thousands of districts facing difficult budget cuts. And, the funds ensure the continued education of our children without having to deal with diminishing resources, teacher layoffs, and classroom mergers. In addition, the compromise allows some of these funds to be used for school modernization; resources that were eliminated by the Senate entirely. Not only does this assistance immediately stimulate the economy by directly producing jobs, but it also ensures 21st century schools for our children.
• Child Tax Credit. The agreement allocates $14.8 billion for the Credit, which is critical to help families from falling into poverty. These resources are directly given to low income families who will use them in the economy immediately while also keeping kids out of poverty. This is achieved by lowering the income eligibility threshold at which families can begin claiming the credit to $3,000 a year.
• Head Start. The conference report appropriates $2.1 billion for the critical program that promotes school readiness, matching the House number. Currently, Head Start positions are in great demand and this funding will provide immediate stimulus by directly producing those jobs. Moreover, this program delivers the long-term benefit of providing comprehensive child development services to disadvantaged children to break the cycle of poverty.
• Supplemental Nutrition Assistance Program (Food Stamps). The agreement matches the House allocation of $20 billion. Economists have widely acknowledged that boosting food stamps is the most efficient way to get money into the economy immediately, while also keeping kids from going hungry during economic downturns.
• Foster Care and Adoption Assistance. The conference agreement also contains an increase of approximately $875 million in federal payments for Foster Care and Adoption Assistance. First Focus led an effort to call on Congress to increase federal payments, in partnership with over 115 federal and state advocacy organizations. This increase will provide significant fiscal relief to states, and is vital in helping states meet the needs of vulnerable children and families during a recession.
View a complete side-by-side breakdown of the child-related provisions in the stimulus.
