October 30, 2009 | 41:10
The Vice President is joined by California Governor Arnold Schwarzenegger and Maryland Governor Martin O’Malley as he reports on the success of the Recovery Act in creating or saving over a million jobs so far. October 30, 2009. (Public Domain)
The White House
Office of the Press Secretary
640,329 Direct Jobs Reported on Approximately Half of Spending To-Date
WASHINGTON – The Obama Administration today reported that recipients of Recovery Act funds have informed the Recovery Accountability and Transparency Board that they have created or saved 640,329 direct jobs in reports covering approximately $160 billion, which represents a little less than half of the funds put to work through September 30, 2009. These reports, covering only directly created jobs and less than half the funds spent thus far, support government and private forecaster’s estimates that overall the Recovery Act has created or saved over one million jobs to-date. The majority of the jobs reported were in the construction and education sectors, indicating the Recovery Act is not only bolstering private sector companies during the economic downturn, but also making critical investments in keeping America competitive in the 21st century. Of the 640,329 jobs, about 325,000 are in education, and over 80,000 are in construction. To learn more about the jobs created and saved, click HERE.
“These reports are strong confirmation that the Recovery Act is responsible for over one million jobs so far and we are on-track to create and save 3.5 million jobs through the Recovery Act by the end of next year,” said Vice President Biden. “This is another encouraging sign of progress following yesterday’s news that the economy has begun to grow again for the first time in more than a year, but the President and I will not be satisfied until monthly reports show net job growth. We are working every day to create more jobs and we will continue to report on our progress doing so with the Recovery Act in the same transparent way we did today.”
The reports were filed in early October by state and local governments, private companies, colleges and universities and community organizations who received Recovery Act funds and will be posted publicly on Recovery.gov later today following a three-week review process. As mandated by Congress, the reports specifically focused on the approximately $160 billion in spending of the $339 billion in spending and tax relief through September 30, 2010 that includes projects and activities. The reports do not cover the Act’s significant tax cuts and direct payments to individuals such as Pell Grants and unemployment compensation. Approximately seventy percent of the funds were reported by state governments, with both Republican and Democratic governors participating in the process.
A report released today by Jared Bernstein, Chief Economist and Senior Advisor to the Vice President, notes that the new data confirms the Administration is on-track to meet its goal of creating and saving at least 3.5 million jobs through the Recovery Act. The report also found that the states with the highest unemployment rates nationwide reported 25 percent more jobs created and saved per capita than the nation as a whole. To view the report, click HERE.
The recipient reports that will be posted today are part of an historic effort to provide the American people with more information about the Recovery Act at work than with any previous government program. With the collection and posting of this new recipient data – a first for a government program - visitors to the site will be able to access over 100,000 recipient and sub-recipient filings that show who received the funds, when they received them, how they began to spend them and the related direct job impact to-date. Recently upgraded mapping features on the site will allow visitors to sort this data by state, zip code or Congressional District, enabling the public to monitor Recovery Act activity taking place in their own backyard. Approximately 90 percent of Recovery funding recipients filed these detailed reports on the use of their funds.
Recipients were asked to only report jobs directly funded by the Act and were instructed not to estimate indirect job impact. For estimates of the total job impact of the Recovery Act, including the impact of the tax cuts, aid to individuals directly hurt by the recession, and much of the state fiscal relief, experts rely on macroeconomic modeling. Using these models, the Council of Economic Advisers and private forecasters estimated that the Recovery Act has helped to create or retain more than a million jobs so far.
Today’s news follows the release yesterday of new third quarter GDP figures that show the economy grew at an annual rate of 3.5 percent in the third quarter of the year in stark contrast to the decline of 6.4 percent annual rate just two quarters ago. Analysis by both the Council of Economic Advisers and a wide range of private and public-sector forecasters indicates the Recovery Act contributed between 3 and 4 percentage points to real GDP growth in the third quarter, suggesting that in the absence of the Recovery Act, real GDP would have risen little, if at all, this past quarter.
To learn more about the story of the Recovery Act as it unfolds, visit www.WhiteHouse.gov/Recovery. To follow Recovery Act spending and activity, visit www.Recovery.gov.
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October 29, 2009 | 7:40
Some folks ask, “where are the jobs?” when talking about the Recovery Act. Jared Bernstein of the White House introduces five stories from around the country—stories of Americans whose jobs have been saved or created by the American Recovery and Reinvestment Act. October 29, 2009. (public domain)
The White House
Office of the Vice President
Wilmington, DE -- As part of the of the Administration’s commitment to jumpstarting the production of fuel efficient vehicles in America, Vice President Joe Biden today announced Fisker Automotive is re-opening a shuttered former GM factory in Wilmington, Delaware, to produce long-range, plug-in, electric hybrid vehicles. The Wilmington assembly plant was selected by Fisker Automotive for its primary global production facility based on its size, production capacity; and access to shipping ports, rail lines and skilled workforce.
“While some wanted to write off America’s auto industry, we said no. We knew that we needed to do something different – in Delaware and all across the nation,” said Vice President Biden. “We understood a new chapter had to be written, a new chapter in which we strengthen American manufacturing by investing in innovation. Thanks to a real commitment by this Administration, loans from the Department of Energy, the creativity of U.S. companies and the tenacity of great state partners like Delaware – we’re on our way to helping America’s auto industry reclaim its top position in the global market.”
In September, Secretary Chu announced a $528.7 million conditional loan for Fisker Automotive for the development of two lines of plug-in hybrids, which will save hundreds of millions gallons of gasoline and offset millions of tons of carbon pollution by 2016. Of the total loan, $359 million is going to revive manufacturing at the Boxwood Plant. The Boxwood Plant will support Fisker Automotive’s Project NINA, the development and build of a mass-market plug-in hybrid sedan. The company estimates it will build 75,000-100,000 of these highly efficient vehicles every year by 2014. Also of the total loan, $169.3 million is helping support engineering integration in Michigan and California as Fisker works with U.S. suppliers to complete the company's first vehicle, design tools and equipment for mass manufacturing, and develop manufacturing processes for the new Wilmington, Delaware, facility.
“This is proof positive that our efforts to create new jobs, invest in a clean energy economy and reduce carbon pollution are working,” said Energy Secretary Steven Chu. “We are putting Americans back to work and reigniting a new Industrial Revolution that is paramount for the economic success of this country.”
“The rebirth of the Boxwood Road plant is good for Delaware’s workers,” said Ed Montgomery, the Executive Director of the White House Council for Automotive Communities and Workers. “The cars that will be produced here are the result of a Federal and state partnership with the private sector to make the energy efficient vehicles of tomorrow. The reopening of this facility serves as another reminder of the resiliency of the American worker and the continuing transformation of our national economy. “
Fisker automobiles are driven by electric motors powered by a lithium-ion battery, or, when that is depleted, a generator driven by an efficient gasoline engine. The electric-only range will be more than most people drive in a day. The battery can be charged at home overnight. Using gas and electric power, Fisker plug-in hybrids will have a cruising range of about 300 miles.
The Fisker loan is the fourth conditional loan commitment the Department of Energy has entered into under the Advanced Technology Vehicles Manufacturing (ATVM) loan program. The Department plans to make additional loans under this program over the coming months to large and small auto manufacturers and parts suppliers up and down the production supply chain.
In addition, plug-in hybrids and other electric vehicles will also become an important part of the smart grid infrastructure being created in the United States. With smart metering infrastructure, consumers and utilities will be able to charge these vehicles when electricity demand and prices are lowest and also when power from intermittent renewable resources like wind and solar are more available. Ultimately, consumers might be able to sell an unneeded portion of the battery's charge back to the grid, creating a system of distributed energy storage that will help make the grid more reliable, save money, and allow us to rely on renewable technologies for a greater percentage of our energy.
The White House
Office of the Press Secretary
Today’s announcement that auto production will be returning to the old GM’s assembly facility in Wilmington, DE, is an example of how successful partnerships can help transform the American auto industry of the future. The White House Council on Automotive Communities and Workers has worked closely with the state of Delaware, federal agencies and the old GM to help support this successful announcement, and will continue working with states and agencies across the country to support positive economic transitions in auto communities.
Mission of the White House Council on Automotive Communities and Workers
On June 23, 2009, President Obama signed an Executive Order creating the White House Council on Automotive Communities and Workers, an administration-wide commitment to provide support to auto communities and workers as they deal with the current crisis in the auto industry and work towards recovery. The Council is chaired by National Economic Council Director Larry Summers and Department of Labor Secretary Hilda Solis. It has as its members the head of every domestic Cabinet agency and the leadership from key White House offices.
White House Council Partnership with Delaware
As with states across the country, the White House Auto Council has been working closely with the state of Delaware for several months.
• Shortly after the closure of the Wilmington facility was announced, the Council’s Director, Ed Montgomery, brought a team of federal agency representatives to Delaware to meet with Governor Markell and Lieutenant Governor Denn to discuss the closure of the GM plant in Wilmington and Chrysler plant in Newark. Representatives from the Department of Labor, Environmental Protection Agency and Department of Commerce’s Manufacturing Extension Partnership and Economic Development Administration talked about how their agencies could help provide support for workers laid off at the facility and lay the groundwork for redevelopment. The Governor’s team emphasized the importance of maintaining an auto industry in the state and building the state’s green industry.
• In response to the needs identified in that meeting, Council staff worked with the State to apply for a Department of Labor National Emergency Grant (NEG) to provide benefits and services to workers laid off at the plants. On July 24th, Vice President Biden announced a $3.8 million dollar NEG to the state that would help provide laid off workers with retraining, job search assistance, career planning and other employment services. Commerce’s Manufacturing Extension Partnership worked with DOL and the state to design some of the training displaced workers have accessed. In coordination with the Council, the Department of Labor continues to work with the state to find ways to provide additional benefits to workers who are ineligible for Trade Adjustment Assistance (TAA).
• In September 2009, the Department of Commerce’s Economic Development Administration (EDA) followed up on the state’s concerns by awarding two grants to the state worth a combined $1.2 million. EDA awarded $800,000 American Recovery and Investment Act funds to Delaware Technical and Community College, Owens Campus in Georgetown to construct a Green Building Technology and Alternative Energy Training Center. The Center will be a training center for workers entering energy-related industries, especially those affected by the recession and automotive industry downturn. A strategic planning grant of $400,000 was also provided to help the state develop an economic adjustment strategy for the reuse of automotive assembly plants and closed manufacturing sites in the state.
• While coordinating with federal agencies, the Council also worked with Motors Liquidation Company (MLC), the owner of the former GM site, to ensure that the company was working with states and local communities to identify the best reuse for closed plants as well as doing whatever MLC could to make sites more marketable for those purposes. As part of these efforts, vital equipment remained in the Wilmington plant, allowing Fisker Automotive to see the plant as a viable option for its use. The Department of Energy’s $528.7 million dollar loan to Fisker Automotive Company through its Advanced Vehicle Technology Manufacturing Loan Program provided Fisker with the resources needed to launch its project. Many of the jobs created will likely go to former GM or Chrysler auto workers.
Background on White House Council Partnerships with Auto Communities across the Country
The Council’s work in Delaware is reflective of work going on in auto communities across the country. Since its creation, Ed Montgomery and Council staff have worked in partnership with local communities to identify the most challenging issues facing each community and with federal agencies to identify resources that can address these needs.
Dr. Montgomery and his team have met with community leaders in Flint, Detroit, Grand Rapids, Lansing, Romulus, Pontiac and Warren, Michigan; Cleveland, Toledo, Dayton, Akron, Warren and Twinsburg, Ohio; Kokomo, Indiana; Wilmington, Delaware; and the St. Louis area, Missouri. They have had meetings with leaders from Tennessee, California, Louisiana, Kentucky, New York, Connecticut, Montana, Nebraska and Wisconsin.
In addition to working with Council staff to address needs in local communities, Council member agencies have started programs and distributed a broad range of resources that have provided vital support to auto communities.
Access to Financing and Support for Companies
$3 Billion Cash for Clunkers Program: This DOT program funded through the Recovery Act resulted in the exchange of nearly 700,000 cars for more fuel-efficient vehicles. The Council on Economic Advisors estimates that the program will create or save 75,000 jobs in the second half of 2009.
SBA Pilot Program for Auto and Other Vehicle Dealers: On May 28, Administrator Mills and Dr. Montgomery announced a new SBA pilot program to offer government guaranteed loans to finance inventory for eligible auto, recreational vehicle, boat and other dealerships. This floor plan financing support is a line of credit that allows dealers to borrow against their inventory to get funds for working capital or add new inventory.
Purchase of Fuel-Efficient Vehicles: On April 9, the Obama Administration announced the GSA purchase of 17,600 fuel-efficient vehicles from GM, Chrysler and Ford. This is the largest one-time purchase of hybrid vehicles for the federal government fleet in history.
Advanced Technology Vehicles Manufacturing (ATVM) Loans: The Department of Energy has announced the awarding of ATVM loans for four auto companies. Under this non-Recovery Act program, automobile, and automobile part manufacturers receive loan commitments for the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States to produce advanced technology vehicles or qualified components, and for associated engineering integration costs. Recipients to date are:
• Ford: $5.9 Billion
• Nissan: $1.6 Billion
• Fisker: $528.7 Million
• Tesla: $465 Million
The Recovery Act and Investing in New Battery Technology:
Grants from the American Recovery and Reinvestment Act are also building a domestic battery industry, making the United States a world leader in advanced vehicle production after years of dominance by Asia. In total, the Department of Energy has awarded $2.4 billion in Recovery Act grants to 48 companies across 25 states to produce and evaluate the next generation of hybrid and electric vehicles and the advanced batteries needed. More specifically, the funding includes:
• $1.5 billion in Recovery Act funding to help establish a manufacturing base to build the batteries of the future
• $500 million in Recovery Act grants to support electric drive component factories which build the unique parts needed for an electric car
• $400 million in Recovery Act funding to support deployment of electric vehicles including evaluation, education and testing
Dislocated Worker Support and Training
National Emergency Grants (NEG): The Department of Labor’s National Emergency Grants (NEGs) are a critical tool in the Secretary of Labor’s response to plant closures and mass layoffs such as those occurring in the auto industry. NEG funds can be used for a broad range of services for laid off workers, including information about the availability of jobs, assistance in finding jobs, training to qualify for jobs, and supportive services such as transportation and child care. In addition to Delaware, DOL has provided NEGs to support dislocated auto workers in Michigan, Ohio, Minnesota and Wisconsin.
$50 Million Green Jobs Training Program for Auto Communities: The Recovery Act provides the Department of Labor with $500 million in new funding to prepare workers for careers in the energy efficiency and renewable energy sectors. Secretary Solis has set aside $50 million in funding specifically for auto communities. These funds will be critical in transforming our nation’s auto communities into international hubs of green technology and innovation.
$25 Million Health Care Jobs Training Initiative for Auto Communities: The Recovery Act provides the Department of Labor with $220 million in new funding to support job training in health care and other emerging industries. Secretary Solis has reserved $25 million of this funding specifically for auto communities.
American Graduation Initiative: This proposed initiative will dedicate nearly $12 billion over 10 years to enhance work force training at community colleges, including money for curriculum development, expansion of online courses, and much needed funding for facilities improvement. As part of his speech in Michigan announcing the program, President Obama called for an additional 5 million community college graduates by 2020 to help the nation compete in the global economy.
Support for Communities
US Treasury Recovery Zone Bonds: Created by the Recovery Act and announced by Treasury Secretary Geithner, the $25 Billion Recovery Zone (RZ) Bond program targets funds to areas affected by job loss and will help counties and targeted municipalities obtain financing for much needed economic development projects, such as public infrastructure development.
Transitioning Properties: EPA, DOJ, the White House Council and the Auto Task Force are currently working with the bankruptcy estates of GM and Chrysler and state and local officials to identify and deal with environmental issues so that properties can be returned to productive economic use as quickly as possible. Integral to this process is the Council's work with the bankruptcy estates to ensure that communities have a voice in determining how properties are ultimately used.
September 30, 2009 | 4:08
Learn how $5 billion in Recovery Act funding will not only allow 12,000 medical research projects to continue, but create tens of thousands of jobs associated with them. September 30, 2009. (public domain)
August 7, 2009 | 6:17
The President responds to the unemployment figures released by the Bureau of Labor Statistics. These numbers are a promising indication that we are on the road to recovery, as the unemployment rate decreased in July. August 7, 2009. (Public Domain)
July 13, 2010 | 26:02 | Public Domain
Christina Romer, Chair of the Council of Economic Advisers, answers your questions from Facebook and the White House website about the future of the labor market. The Council of Economic Advisers earlier released a report, “Preparing the Workers of Today for the Jobs of Tomorrow,” which outlines how the U.S. labor market is expected to grow and change over the next few years.
July 10, 2009 | 7:57
The President explains how the Recovery Act helped end our economic free fall, and how his agenda is helping to set a new foundation for our economy. From health reform, to energy, to creating the jobs of the future, the Presidents proposals will make our economy stronger for both the current generations and our children, all in a way that will get our deficits under control. July 10, 2009. (Public Domain)