The Recovery Act Blog

Don't mess with Joe (and others)

Posted by Macon Phillips on February 25, 2009 at 2:45 PM EDT

White House photo 2/25/09 by Sharon Farmer

"They said last night don't mess with Joe," the Vice President said today (Ash Wednesday) at the first Recovery Plan Implementation meeting. Then, pointing to his left, he corrected that perception: "This is the guy you don't mess with."

He's talking about Earl Devaney, announced this week as the choice to lead the Recovery Act Transparency and Accountability Board.

"The President has appointed one of our toughest Inspector Generals -- he's a no-nonsense guy -- to help us follow the money," the Vice President said.

A former Secret Service agent best known for his record of rooting out corruption as an Inspector General (IG) at the Interior Department, Devaney said it's not enough just to detect fraud and waste -- we've got to prevent it before the fact.

"I'll be on the frontlines, alongside the department IGs, preventing that waste," he said. And once the money starts to go out and Recovery.gov has all sorts of data, he said, he's counting on everyday Americans to take the initiative and keep an eye on the government, too.

There will be regular Recovery Plan Implementation meetings in the weeks and months ahead, so the Vice President can get regular updates from department and agency leaders – to hear what’s working and what isn’t.

Other key quotes from the meeting:

Vice President Biden:

"This is a monumental project, but it's doable...It's about getting the money out in 18 months, to literally dropkick us out of this recession."

"The fact that so many Americans are struggling to get by should be an incentive to make sure the money is spent well."

Office of Management and Budget Director Peter Orszag:

"We are asking the taxpayers for their help to get this country out of this recession, and in return they deserve accountability and transparency. We have to go beyond normal procedure to a higher level of reporting."

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Recovery in Action: Minneapolis and Oregon

Posted by Macon Phillips on February 23, 2009 at 9:06 PM EDT

The first dollars from the American Recovery and Reinvestment Act are going out in just two days -- Wednesday, Feb. 25, 2009 -- in the form of federal support for state medicaid payments.

But the impact is already being felt well beyond that. Just today, Minneapolis mayor R.T. Rybak announced that he was prepared to swallow hard and make significant cuts to public works and public safety. Thanks to the ARRA, he won't have to:

"Now let’s turn to Police. If the Governor’s cuts were passed on directly to the Police Department, it would have led to the elimination of 57 sworn police officer positions and 19 non sworn employees. We will not have to do that because of two factors. First, working with Chief Dolan, we are proposing elimination of $1.5 million in non personnel costs, including overtime.

"Second the federal Recovery Act’s one time public safety grants arrived just in time. President Obama said he would help cities keep police officers on the job and he has delivered. Because of this funding I will be proposing no personnel cuts in the Police Department. Next time someone asks you what the Recovery Act will do, start by telling them it will keep 57 police officers working on the streets of Minneapolis."

And in Oregon, the funds dedicated to overhauling our energy grid are already spurring investment in green jobs:

"The Bonneville Power Administration will start building a 79-mile, $246 million electrical transmission line this spring along the Columbia River that the agency says will create 700 construction jobs.

"The regional power agency said it is going forward with the project, which has been on hold since 2002, because the stimulus bill signed by President Barack Obama raises the BPA's borrowing authority by $3.25 billion. Its current borrowing authority is $4.4 billion.

" 'The recovery package allows expansion plans of this magnitude,' said Steve Wright, the BPA administrator."

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Help is on the way

Posted by Macon Phillips on February 23, 2009 at 12:57 PM EDT

$15 billion of funds from the American Recovery and Reinvestment Act will be available in just two days, the President announced this morning, just a week after the act was signed into law.

"By the time most of you get home; money will be waiting to help 20 million vulnerable Americans in your states keep their health care coverage," he told a gathering of the nation's governors in the State Dining Room of the White House. "Children with asthma will be able to breathe easier, seniors won't need to fear losing their doctors, and pregnant women with limited means won't have to worry about the health of their babies."

But as with all the money in the ARRA, it's "not a blank check," the President said. (Learn more about the grant-making process.) He hammered it home by announcing that he's tasked Vice President Biden to oversee the American Recovery and Reinvestment Act, and that he's named Earl Devaney to keep an eye on every dollar as head of the Recovery Act Transparency and Accountability Board.

A former Secret Service agent, Devaney has worked since 1999 as the Inspector General of the Interior Department, where he exposed the Abramoff scandals and a deep culture of corruption among Bush officials and appointees.

"For nearly a decade as Inspector General at the Interior Department, Earl has doggedly pursued waste, fraud and mismanagement," the President said, "and Joe and I can't think of a more tenacious and efficient guardian of the hard-earned tax dollars the American people have entrusted us to wisely invest.

"He looks like an inspector," he added. "He's tough."

The appointment of Devaney follows on a tough memo from OMB director Peter Orszag to the heads of federal departments and agencies, explaining the high standards that are expected of them in reporting use of ARRA funds.

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The quickest and broadest tax cut ever

Posted by Macon Phillips on February 21, 2009 at 6:00 AM EDT

Two important takeaways from the President's Weekly Address this morning.
#1, the American Recovery and Reinvestment Act will start having an impact as soon as a few weeks from now, in the form of the quickest and broadest tax cut in history:

"Because of what we did, 95% of all working families will get a tax cut -- in keeping with a promise I made on the campaign. And I’m pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks -- meaning that by April 1st, a typical family will begin taking home at least $65 more every month. Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans."

#2, once the economy has recovered and we’ve laid the groundwork for a sustainable future, the President is committed to taking on the massive deficits we inherited:

"That work begins on Monday, when I will convene a fiscal summit of independent experts and unions, advocacy groups and members of Congress to discuss how we can cut the trillion-dollar deficit that we’ve inherited. On Tuesday, I will speak to the nation about our urgent national priorities, and on Thursday, I’ll release a budget that’s sober in its assessments, honest in its accounting, and that lays out in detail my strategy for investing in what we need, cutting what we don’t, and restoring fiscal discipline."

Watch the full address and read the text below.

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White House photo 2/20/09 by Pete Souza

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SATURDAY, February 21, 2009
WEEKLY ADDRESS BY THE PRESIDENT
TO THE NATION

THE PRESIDENT: Earlier this week, I signed into law the American Recovery and Reinvestment Act -- the most sweeping economic recovery plan in history. Because of this plan, 3.5 million Americans will now go to work doing the work that America needs done.

I'm grateful to Congress, governors and mayors across the country, and to all of you whose support made this critical step possible.

Because of what we did together, there will now be shovels in the ground, cranes in the air, and workers rebuilding our crumbling roads and bridges, and repairing our faulty levees and dams.

Because of what we did, companies -- large and small -- that produce renewable energy can now apply for loan guarantees and tax credits and find ways to grow, instead of laying people off; and families can lower their energy bills by weatherizing their homes.

Because of what we did, our children can now graduate from 21st century schools and millions more can do what was unaffordable just last week -- and get their college degree.

Because of what we did, lives will be saved and health care costs will be cut with new computerized medical records.

Because of what we did, there will now be police on the beat, firefighters on the job, and teachers preparing lesson plans who thought they would not be able to continue pursuing their critical missions. And ensure that all of this is done with an unprecedented level of transparency and accountability, I have assigned a team of managers to make sure that precious tax dollars are invested wisely and well.

Because of what we did, 95 percent of all working families will get a tax cut -- in keeping with a promise I made on the campaign. And I'm pleased to announce that this morning, the Treasury Department began directing employers to reduce the amount of taxes withheld from paychecks -- meaning that by April 1st, a typical family will begin taking home at least $65 more every month. Never before in our history has a tax cut taken effect faster or gone to so many hardworking Americans.

But as important as it was that I was able to sign this plan into law, it is only a first step on the road to economic recovery. And we can't fail to complete the journey. That will require stemming the spread of foreclosures and falling home values, and doing all we can to help responsible homeowners stay in their homes, which is exactly what the housing plan I announced last week will help us do.

It will require stabilizing and repairing our banking system, and getting credit flowing again to families and businesses. It will require reforming the broken regulatory system that made this crisis possible, and recognizing that it's only by setting and enforcing 21st century rules of the road that we can build a thriving economy.

And it will require doing all we can to get exploding deficits under control as our economy begins to recover. That work begins on Monday, when I will convene a fiscal summit of independent experts and unions, advocacy groups and members of Congress, to discuss how we can cut the trillion-dollar deficit that we've inherited. On Tuesday, I will speak to the nation about our urgent national priorities. And on Thursday, I'll release a budget that's sober in its assessments, honest in its accounting, and lays out in detail my strategy for investing in what we need, cutting what we don't, and restoring fiscal discipline.

No single piece of this broad economic recovery can, by itself, meet the demands that have been placed on us. We can't help people find work or pay their bills unless we unlock credit for families and businesses. We can't solve our housing crisis unless we help people find work so that they can make payments on their homes. We can't produce shared prosperity without firm rules of the road, and we can't generate sustained growth without getting our deficits under control. In short, we cannot successfully address any of our problems without addressing them all. And that is exactly what the strategy we are pursuing is designed to do.

None of this will be easy. The road ahead will be long and full of hazards. But I am confident that we, as a people, have the strength and wisdom to carry out this strategy and overcome this crisis. And if we do, our economy -- and our country -- will be better and stronger for it.

Thank you.

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On the front lines

Posted by Macon Phillips on February 20, 2009 at 12:07 PM EDT

"You're on the front lines," President Obama told a gathering of 85 mayors in the East Room of the White House this morning.

Mayors and governors have to keep balanced budgets, so they are familiar with the pain that comes with making cuts that broad and deep, he said.

And when that happens, people "turn to the mayor's office for help."

That's why the American Recovery and Reinvestment Act provides much needed assistance to states, cities, and towns that are in desperate need of it to keep from making major cuts in essential services, and to save jobs.

But more than that, by investing in health care, education, and infrastructure, the ARRA will "make our metropolitan areas more livable and sustainable."

In return, the President said he expects an unprecedented level of vigilance in making sure the money from the act is spent efficiently and wisely.

"We can't tolerate business as usual -- not in Washington, not in our state capitals, not in our cities and towns."

White House photos 2/20/09 by Pete Souza

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Signed, sealed, delivered: ARRA

Posted by Macon Phillips on February 17, 2009 at 5:25 PM EDT

The economic recovery package is essential for our nation's economy, for its infrastructure, and for our energy, health, and education needs -- and now it's the law.

After months of planning and weeks of negotiation, President Obama signed the American Recovery and Reinvestment Act today in Denver, CO.

"What I am signing is a balanced plan with a mix of tax cuts and investments. It is a plan that’s been put together without earmarks or the usual pork barrel spending. And it is a plan that will be implemented with an unprecedented level of transparency and accountability," President Obama said before signing the bill into law. "And we expect you, the American people, to hold us accountable for the results. That is why we have created Recovery.gov – so every American can go online and see how their money is being spent."

That site, Recovery.gov, is now live. You can go there to see projections -- based on language in the legislation -- of where your money will go, broken down state-by-state. And over the coming weeks and months, as the funds start to go out, you'll be able to see far more detailed information.

It's just the beginning of a long process, of course -- on Air Force One today, Press Secretary Robert Gibbs called it "a strong start towards economic viability."

"Our American story is not -- and has never been -- about things coming easy," the President said in his remarks at the Denver Museum of Nature and Science. "It’s about rising to the moment when the moment is hard, converting crisis into opportunity, and seeing to it that we emerge from whatever trials we face stronger than we were before."

Before the signing, President Obama toured the museum's solar panel installation.

Read the President's and Vice President's full remarks.

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