Recovery Bill Passes House

Press Release

RECOVERY BILL PASSES HOUSE

U.S. Rep. Diana DeGette (D-CO), Vice Chair of the Committee on Energy and Commerce, today hailed the passage of H.R. 1, the American Recovery and Reinvestment Act, which passed on a vote of 246 to 183.

"Since the recession began over a year ago, the United States has lost 3.6 million jobs. We are facing the worst economic crisis since the Great Depression," said DeGette. "In order to get our economy back on track, not only do we need make the broad investments provided for under this legislation in health care, education, and infrastructure, we need to continue working with the Administration to address foreclosures and the troubled financial sector. The economic downturn has been crippling and these programs will help save and create jobs that will begin to fuel our economy.

"Our economy is struggling and America needs us to act. Colorado is facing a $600 million budget shortfall that could result in thousands losing their jobs. We must blunt the economic downturn with an immediate recovery plan that will stabilize the economy."

What This Means for Colorado

· 1,870,000 workers will receive a tax cut of up to $800 through a reduction in their federal tax withholding;
· The Child Tax Credit was expanded for 13 million children in low-income working families, reaching 2.9 million new children -- 191,000 estimated in Colorado;
· The bill creates or saves approximately 59,000 jobs in Colorado over the next two years, over 90% of which are in the private sector -7,500 in the First Congressional District;
· 173,000 workers will receive an additional $100 per month in unemployment insurance benefits;
· An estimated 99 schools in Colorado will receive some funding for modernization - labs, classrooms, libraries.

U.S. Rep. DeGette also secured a $500 million increase in funding allocations for Disproportionate Share Hospitals (DSH) in the final compromise package. The DSH program provides the predominant funding mechanism for states to directly reimburse care provided to the uninsured.

"As the economy worsens and the number of jobless claims increases, hospitals are being confronted with a growing number of individuals walking through their doors who have lost their health insurance. The uninsured often rely on hospitals, such as Denver Health, to provide care; however, hospitals are not always fully reimbursed for this care. With the current recession expected to last a year or more, the increase in uncompensated care will quickly be unsustainable. Hospitals cannot continue to absorb these increasing costs and keep their doors open," concluded DeGette.

Temporary Increase in Disproportionate Share Hospitals (DSH) Payments -- $500 million

§ Increases states' FY2009 annual DSH allotments by 2.5%;
§ Increases states' FY 2010 by 2.5% above FY2009 DSH allotment (with the adjustment);
§ After FY2010, states' annual DSH allotments would return to 100% of the annual DSH allotments as determined under current law.

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