Senator Sherrod Brown

WASHINGTON, D.C. – U.S. Senator Sherrod Brown (D-OH) announced that the Senate version of the economic recovery legislation includes $7.9 billion in funds for Ohio and is estimated to provide tax relief for nearly 4.2 million Ohioans. This includes more than $3 billion in funds for the Medicaid program, which traditionally consumes more than one-third of Ohio’s state budget.

“This bill is about immediate job creation and long-term infrastructure investments that promote economic development,” said Brown. “This isn’t a perfect bill, but it is a significant step toward reversing eight years of Iraq war policy and tax cuts for the wealthy that starved our nation’s infrastructure and broke state and local budgets. We need to rebuild our economy, put Americans back to work, and provide tax relief to middle class families. Nobody wanted to have to spend this money, but inaction is not an option while our nation is hemorrhaging jobs. This bill is about putting our nation back on track.”

Brown has been fighting to ensure the economic recovery legislation brings critical funds to Ohio and creates jobs while meeting the needs of Ohio families.

Infrastructure Funds, Including Critical Water and Sewer Projects

The bill includes infrastructure funds to help repair roads, bridges, and sewer systems while putting Ohioans to work. The bill includes $282.9 million in funds for water and sewer projects, $914.6 million in highway funds, and $203 million in investments in mass transit in Ohio. In December, Brown led a group of senators in calling for major water and sewer investment in the economic stimulus legislation. Read of copy of the letter here. Ohio communities currently have more than $20 billion in documented need for water and sewer system upgrades. Brown also sent a December letter to then President-elect Barack Obama about Ohio’s specific infrastructure needs. You can read Brown’s letter here.

Helping Ohio Meet Budget Challenges

Medicaid programs consume more than one-third of Ohio’s budget. In the Senate economic recovery legislation, Ohio is slated to receive $3.097 billion in Medicaid funds, freeing up funds in the state budget. Brown successfully fought to ensure that states with unemployment rates above the national average receive a larger share of Medicaid funds.

Last month, Ohio’s unemployment fund ran out and the state’s system crashed because of an extraordinary increase in demand. Brown is a cosponsor of legislation that would provide funds to states that modernize their unemployment systems. Under the economic recovery legislation, Ohio could receive $266.2 million in new funding if it fully enacts the UI modernization incentives that the legislation would provide.

Investing in Green Energy

Brown has been working to position Ohio as the “Silicon Valley” of alternative energy manufacturing. Earlier this year, he introduced legislation to provide grants for the production of green energy. The economic recovery legislation includes $33 billion in green energy tax incentives that are designed to grow jobs in the renewable energy sector by encouraging production of alternative energy sources.

The bill also includes $16 million in funds for Ohio’s State Energy Program and $159 million to help Ohioans weatherize their homes, which is also geared toward creating jobs in the process.

Tax Relief for Ohio Middle Class Families

The economic recovery act provides critical tax relief for middle class Ohioans. The “Making Work Pay Tax Credit” will provide up to $500 for individuals and $1,000 for married couples. It is estimated that 4.179 million Ohioans will receive tax relief through this credit.

Additionally, the legislation prevents 884,000 Ohioans from paying the “Alternative Minimum Tax.” The AMT was established in 1969 to target approximately 150 high-income households that were making so many deductions that they otherwise would have no tax liability. Because it has not been indexed for inflation, it now affects millions of middle class households.

Investing in America’s Competitiveness

Brown has been fighting to ensure the economic recovery legislation doesn’t just provide a short-term boost to the economy, but provides long-term investments in the competitiveness of American workers and business. Ohio is one of the largest beneficiaries of education and training funds in the economic recovery legislation. Under the Senate bill, Ohio would receive over $1.17 billion in funds that invest in local school districts and public colleges and universities—lessening the burden on local property taxes.

The bill also provides funds for communities hard-hit by job loss. Ohio would receive $54.4 million in funds to retrain dislocated workers and help communities with high unemployment rates build “regional clusters” of industry and workforce. In December, Brown led a group of senators in calling for “economic disaster” relief funding for communities facing massive job loss. You can read a copy of his letter here.  Brown is also the author of the “Strengthening Employment Clusters to Organize Regional Success (SECTORS) Act,” which would provide funding for workers seeking specialized training for emerging industries. Read about Brown’s bill here.

Meeting Human Needs and Protecting Important Services

The economic recovery legislation also includes critical funds to help unemployed and uninsured Ohioans. Brown led the fight to increase funding for food banks by successfully increasing funds for the Emergency Food Assistance Program. Ohio will receive more than $565 million in funds that support food banks, school lunches, and other vital nutrition programs.

Brown also fought to ensure the economic recovery legislation makes health insurance more affordable and accessible for unemployed workers. On January 7, Brown introduced legislation that would address gaps in access to health coverage that jeopardize the health and stability of unemployed workers and their families. Components of Brown’s Coverage Continuity Act are included in the economic recovery legislation, including a provision to ensure that temporary COBRA health insurance is more affordable.

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