Obama Limits Lobbyists When It Comes to Stimulus
This week, President Obama issued an executive memorandum to the heads of federal agencies to remind them of the spirit of the Recovery Act. The memo states that the purpose of the American Recovery and Reinvestment Act (ARRA) (P.L. 111-5) is intended to stimulate the economy and should not “fund projects for special interests” While the legislation prohibited casinos, aquariums, zoos, golf courses, and swimming pools from receiving ARRA dollars, the president took the opportunity to warn agencies that ill-advised projects that do not spur job creation or revive the economy will also be restricted from funding. The memorandum directs agencies to ensure merit-based decision making for grants and prohibit funding of “imprudent” projects. Once again on the stump to voice the administration’s ARRA policies, Vice President Biden told the National Conference of State Legislatures that “we intend to make sure that the spirit of the law is actually followed…”
The president's memo was met with an uproar inside the beltway by lobbyists who are now prohibited from participating in White House or federal agency meetings with ARRA funding applicants that discuss particular projects in person or by telephone. The only allowable communication that lobbyists may engage in with regard to stimulus-related meeting is in the form of a written statement. The memo continues to direct the federal agencies to make these written statements public within three business days and to disregard any lobbyist views not made in writing.
Department of Agriculture (USDA)
The Department of Agriculture has partially or nearly completely obligated funds for the following programs:
- Commodity Assistance Program ($125 million out of $150 million).
- State Child Nutrition Program ($99.9 million out of $100 million).
- Supplemental Nutrition Program ($144.5 million out of $20.1 billion)
- Capital Improvement and Maintenance ($15.7 million out of $650 million).
- Wildland Fire Management ($12.4 million out of $500 million).
Two Department of Commerce agencies made progress toward implementing the provisions of the Recovery Act relevant to them this week. The National Oceanic and Atmospheric Administration (NOAA) began accepting proposals for coastal habitat restoration projects. NOAA anticipates distributing $170 million worth of marine habitat restoration funds with typical awards ranging from $1.5 million to $10 million. NOAA will formally seek proposals for this program until April 6; information on this federal funding opportunity is available at the NOAA habitat recovery website.
The National Telecommunications and Information Administration (NTIA) announced that money allocated to the agency by the ARRA has allowed NTIA to clear the digital converter box coupon waiting list. As a result, consumers can apply for a converter box coupon and receive assistance from the NTIA immediately.
On March 20, the Department of Defense released its expenditure plan for the projects to be funded by the stimulus package. The Recovery Act provided $7.4 billion to the Department largely for projects that are located at military installations spread across all fifty states, District of Columbia and two U.S. territories. The report includes $2.3 billion in construction projects, including two major hospital construction projects—one at Camp Pendleton, California and the other at Fort Hood, Texas—and a hospital alteration project at the Naval Air Station in Jacksonville, Florida. Further, the plan allocates $3.4 billion for nearly 3,000 facility repair and improvement projects that will immediately generate additional employment in communities around military installations and also details how $300 million for near-term energy technology research will be allocated. The allocation of the remaining $800 million for defense facilities infrastructure investment be announced at a later date.
The Department of Education announced that $11.4 billion in Recovery Act funding for Title I, IDEA Parts B and C, Vocation Rehabilitation, and Independent Living Grants will be made available on March 26. Additionally, the department announced that application and guidance materials were drafted for final review for Phase I distribution of Title I and IDEA grant monies and State Fiscal Stabilization Fund applications will be released by the end of March.
On March 23 during a visit to the Brookhaven National Laboratory, DOE Secretary Steven Chu announced details of how the first $1.2 billion in Recovery Act dollars will be spent for major construction, laboratory infrastructure, and research efforts across the nation.
Also this week, Vice President Joe Biden announced that DOE’s Energy Efficiency and Conservation Block Grant program will invest a total of $3.2 billion in energy efficiency and conservation projects across the country. The program will provide cities and counties with nearly $1.9 billion in block grants, states with $770 million and tribal governments with $54 million. These funds will be distributed via a formula that accounts for population and energy usage. The DOE will disburse the remainder of the initial $3.2 billion in a competitive grant program. A solicitation for applications for the competitive grant program will be released at a later date.
Department of Health Human Services (HHS)
On Friday, March 20, HHS announced $268 million in Medicaid Disproportionate Share Hospitals (DSH) increased state allotments. The department also announced the availability of $1 billion of Recovery Act funds for state programs that establish, enforce, collect and distribute child support.
Department of Homeland Security (DHS)
The Department of Homeland Security has appropriated all of its stimulus dollars, obligated $2.3 million for customs and board protection construction projects, but has yet to distribute any money. Several of the agencies that comprise DHS have, however, announced their timelines for distributing ARRA funds.
The Federal Emergency Management Agency:
- Will issue grant guidance June/July 2009
- Receipt and review of grant applications July/August 2009
- Grants will be awarded September/December 2009
Customs and Border Protection:
- Ports of Entry - Plans to issue multiple Request for Proposal (RFP) by 6/25/09 for multiple design/build project contract award by 8/16/09.
Department of the Interior (DOI)
To date, the Department of the Interior has yet to obligate or disburse any of its ARRA funding. The agency is still in the process of developing its ARRA implementation plans.
Over the past week, the DOJ’s Office of Violence Against Women sponsored four teleconferences with Recovery Act Transitional Housing applicants. During these calls, DOJ officials provided applicants with information on the application process.
Community Oriented Policing Services (COPS) staff began reviewing application data to validate submissions and “clean” data this week. Also, at the request of Congressman Rush Holt, COPS staff participated in grants workshop in Monroe County, New Jersey.
On March 18, the Department of Labor announced that it had issued guidance and notices of obligation for the $3.4 billion in formula funding to the states for WIA Adult, Youth, a Dislocated Worker and Wagner-Peyser (Employment Service) programs. Additionally, the department issued temporary guidance and notices of obligation for $118 million in Senior Community Service Employment Program (SCSEP) funds and for $17 million in WIA funds for Native American and Tribal Youth programs.
Department of Transportation (DOT)
The Federal Transit Administration announced in the March 24 Federal Register that it will award $100 million to transit agencies for projects that will lower their energy use or reduce greenhouse gas emissions. The effort is known as the Transit Investments for Greenhouse Gas and Energy Reduction (TIGGER) Program and its evaluation criteria was detailed in its announcement. Projects will be evaluated separately on either greenhouse gas or energy use reductions, but applicants may request evaluations on both criteria. In addition to the energy and greenhouse gas decreases, projects will be judged based on the estimated return on investment, project readiness, national applicability, and a transit agency’s ability to implement the project.
Projects should cost between $2-$25 million, with the federal government paying 100% of the cost, though other funding sources may be used as a supplement. Grant applications will be accepted until May 22. Comments will be accepted through April 7.
Department of the Treasury (DTR)
Treasury has not provided any new details regarding the implementation of the 30 modifications to the U.S. tax code contained within the ARRA legislation this week.
Environmental Protection Agency (EPA)
On March 19, 2009, EPA’s Brownfields Program issued a request for applications (RFA) from eligible governmental entities and nonprofit organizations to provide environmental job training projects that will facilitate job creation in the assessment, remediation, or preparation of brownfields sites for sustainable reuse. The closing date for receipt of applications is April 20, 2009. More information on this program is available here.
The EPA also announced that it received full grant applications for the Clean Water State Revolving Fund from Connecticut, Maine, Rhode Island, Kentucky, Oklahoma, Arizona, California, Hawaii, Nevada, Vermont, Michigan, New York, West Virginia, North Carolina and Puerto Rico, and a conditional application from Nebraska. It also received full grant applications under the Drinking Water State Revolving Fund from Maine, Kentucky, Vermont, and Kansas, and conditional applications from Michigan and Nebraska.
The EPA also developed draft Recovery Act guidance for interagency agreements and distributed the guidance to the EPA grants management community for comment. This guidance will clarify the procedures for entering into agreements with other federal agencies and departments. Interagency agreements allow the EPA to better leverage federal resources in carrying out the provisions of the Recovery Act..
General Services Administration (GSA)
The General Services Administration announced that Bill Guerin will head the new Recovery Act Program Management Office. Mr. Guerin currently serves as the Assistant Commissioner for Construction for GSA's Public Buildings Service and is responsible for the delivery of GSA's more than $1 billion per year capital investment program, focused on the design and construction of federal buildings, land ports of entry, courthouses, and other construction projects.
Additionally, the GSA has established a national Program Management Office dedicated to managing Recovery Act projects. The PMO will have national and local elements, to ensure that the necessary expertise and infrastructure are coordinated and available when and where they are needed. The PMO is the core component of an integrated management structure to ensure effective delivery of Recovery Act objectives. The PMO is expected to be fully staffed by mid-April
State Recovery Act Plans
Individual states continue to take their own steps to implement the Recovery Act. For more information on state efforts, please visit the directory of state recovery websites.
Notice: The purpose of this newsletter is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, the accuracy and completeness of which cannot be assured. This alert should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.