The American Recovery and Reinvestment Act targets investments to key areas that will save or create good jobs immediately while also laying the groundwork for long-term economic growth. The Recovery Act benefits Washington state in the following ways:
Program Grants – State and Local: Competitive grants are available to state and local governments to help create jobs, improve infrastructure and lay a foundation for future economic growth. For example, grants provide funding for repaving roads, upgrading wastewater treatment systems and hiring law enforcement officers. Click here for general information on applying for grants. Learn more about funding awarded and received by the state for program grants.
Federal Contracts: Federal agencies contract directly with vendors to complete work on projects in Washington State.
Resources for Citizens: Includes increased funding for emergency unemployment compensation, food stamps, foster care, Medicaid, emergency food assistance, and Pell education grants. More information on assistance for individuals can be found on the Resources for Citizens webpage.
Tax Benefits for Individuals: Includes reductions in payroll taxes equal to $400 for individuals and $800 for families, tax credits for first-time home buyers and education, and “Cash for Clunkers.” More information on tax benefits can be found here.
One-Time Payments: Provides $250 in additional compensation for veterans, Social Security and Supplemental Security Income recipients, and retired railroad employees.
Tax Benefits for Government and Business: Businesses receive tax incentives for manufacturing and renewable energy, while state and local governments are given tax relief through Build America Bonds, school construction bonds, and low income housing grants. More information on tax benefits for businesses can be found here.
In addition to directly creating and retaining jobs, Washington state benefits from the ancillary effects of funding such as indirect and induced jobs. For example: A construction worker working on a transportation project funded through a program grant is a direct job. The gravel supplier is an indirect job resulting from the project. An induced job is a job that exists because of the money spent by the construction worker in the community as a result of employment (like a barista at a local coffee shop). The state’s reports to the federal government only reflect direct jobs.
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