American Recovery & Investment Act

February 13, 2009

The American Recovery and Reinvestment Act (ARRA) Disability-related Provisions Contained in the Conference Agreement and What Chapters of The Arc Need to Do to Prepare

The ARRA has been moving extremely quickly through Congress. The Arc and UCP has been working hard to ensure that the economic recovery package signed into law maintains the highest funding levels for disability-related programs and provides for the best possible protections for people with disabilities. The final Bill contains $787 billion in tax cuts and program funding. Most of the funding is intended to grow and protect jobs.

What is the Status of the Legislation?

Jan 28 - passed by House by a vote of 244-188
Feb 10 - passed by Senate by a vote of 61-37
Feb 11 - the Senate - House Conference Committee resolved the differences between the two bills.
Feb 13 – the House passed the conference bill by a vote of 246-183
Feb 13 - the Senate in the process of voting on final passage.
Feb 16 - President Obama is expected to sign the bill into law.

What are the Major Disability-related Provisions and their Funding Levels?
The following is a list of disability specific programs and the amount of increased spending they will receive from the time the bill is enacted through 2010:HEALTH
Medicaid: An $87 million increase in the Federal government's share of Medicaid spending (FMAP) which runs from October 1, 2008 to December 31, 2010. Sixty-five per cent of the funds will be given to all states. Thirty-five per cent will be used for additional payments (in the form of a decrease in a state's match) for states with high unemployment rates. Each state will receive a "base" 6.2% increase. A state specific analysis can be accessed at http://www.cbpp.org/2-13-09sfp.htm.
There is a "maintenance of effort" requirement which prohibits states from changing eligibility. However there is NO maintenance of effort provision for benefits or services. Therefore it is critical for affiliates and chapters to meet with their State MR/DD and Medicaid agencies, their Governor's office, and State Legislature immediately to urge them to use this increased funding for disability services.
The Act extends a moratoria on Medicaid regulations which are in "final" form (i.e. the school based services/transportation, the targeted case management, and the outpatient rules) from April 1 through June 30, 2009. The bill also contains a "Sense of the Congress" that the Secretary of the Department of Health and Human Services shall not publish any pending Medicaid rule (including the rehabilitative services option proposed rule) in final form.
COBRA: 65% premium subsidy for 9 months.
Health Information Technology: $19 billion to jumpstart computerized health records.
Prevention and Wellness: $1 billion to prevent chronic diseases and to increase immunization programs.
Lead-Based Paint Removal: $100 million - competitive grants to localities and nonprofits to remove lead paint in low income housing
NIH Biomedical Research: $10 billion for increased research.
EDUCATION
Special Education: $11.3 billion for the IDEA State Grant Program and $500 million for the IDEA Part C Early Intervention Program. $400 million for the pre-school program.
SOCIAL SECURITY
SSI: A one-time emergency payment of $250 to people who receive Supplemental Security Income (SSI), Social Security, disabled veterans, and other selected benefits.
SSA Disability Backlog and Claims: $500 million to help the Social Security Administration reduce the processing time for claims and appeals decisions
SSA Modernization: $500 million to replace the antiquated NationalComputerCenter.
EMPLOYMENT
Vocational Rehabilitation: $540 million for VR State Grant.
Unemployment Insurance: Funding is provided to modernize the unemployment compensation program, to add $25 to the weekly benefit, to continue the current up to 33 weeks of extended benefits through December 31, 2009 and to temporarily suspend federal income tax on the first $2,400 of unemployment benefits per recipient for 2009.
Job Training: $500 million for adult, $1.2 billion for youth services.
INDEPENDENT LIVING
Centers for Independent Living: $140 million to assist people with disabilities to live in their communities.
HOUSING
Public Housing Capital Fund: $4 billion for building repair and modernization
$250 million for a new program to fund energy retrofits of Section 811 Supportive Housing for Persons with Disabilities, Section 202 for the Elderly and Project Based Section 8 units to make them for energy efficient. HUD will publish a Notice of Funding Availability shortly announcing details of the program.
HOME Investment Partnerships: $2.25 billion with $2 billion targeted to fill gaps in approved Low Income Housing Tax Credit projects and jump start these stalled projects.
Community Development Block Grant: $1 billion to support housing and services to help hard pressed localities.
Community Services Block Grant: $1 billion for housing, food, employment and healthcare to serve areas hardest hit by the recession.
Low-Income Energy Assistance: Not Funded.
Neighborhood Stabilization: $2 billion for communities to purchase and rehabilitate foreclosed, vacant properties to create more affordable housing.
Home Weatherization: $5 billion to weatherize homes of low income households to reduce energy costs.
CHILD CARE and HEAD START
Child Care Development Block Grant: $2 billion to serve an additional 300,000 children in low income working families. $93.6 million is targeted to improve infant and toddler care.
Head Start: $2.1 billion to provide services to 110,000 additional children.
For more information, click the links below (note: each of these documents are extremely legthly):
American Recovery and Reinvestment Act of 2009
Conference report 111-16
The DPC will develop more materials on the ARRA. Many questions remain, such as when will the funding be released and how much of the new funding will be subject to regulation or other procedures. UCP affiliates and chapters of The Arc should begin immediately to work their Governors, Mayors, Medicaid Agency, School Systems, and other entities to assure that our constituents and service agencies receive a fair share of this emergency funding.


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