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More ARRA Reporting Requirements Released as Citizen Groups Fight Lobbying Restrictions

Government Relations Update - Economic Stimulus

In an appearance before the Senate Homeland Security and Government Affairs Committee on Thursday, April 2, Office of Management and Budget (OMB) Deputy Director Rob Nabors outlined soon-to-be released regulations that the Obama Administration hopes will increase the transparency of American Recovery and Reinvestment Act (ARRA) fund distribution. The new regulations will require agencies to submit information on the prime recipients, and any subrecipients, of stimulus bill funds to OMB. These requirements will apply to the $60 billion in federal contracts and the $300 billion in grants authorized by the ARRA. The information received by OMB will ultimately be posted on Recovery.gov.

In his testimony before the committee, Nabors said that new requirements will allow the public to see how stimulus funds are being spent, but the level reporting will not be so burdensome as to limit the ability of federal agencies to efficiently distribute the money. Nabors also reported that as of March 30, federal agencies have obligated over $28 billion in Recovery Act funds and announced a total of $151 billion in formula and block grants to states. He expressed optimism that the Administration could meet its goal of spending 70 percent of the money allocated in the stimulus bill within 18 months of the bill’s passage.

In other stimulus news, a number of groups have begun considering various responses to the Obama Administration’s decision to bar lobbyists from meeting with or speaking with executive branch officials in regards to specific stimulus projects or applications. The American League of Lobbyists, Citizens for Responsibility and Ethics in Washington, and the American Civil Liberties Union worked together to draft a letter of protest to White House Counsel Gregory Craig.

American League of Lobbyists (ALL) President David Wenhold said his group is seriously considering taking legal action if the rules are not altered. The ALL has questioned the constitutionality of the ban because it only applies to lobbyists.

Meanwhile, Blank Rome is implementing strategies for its clients focused on mobilizing Members of Congress, state and local elected officials, and other third parties who can be influential in the funding decisions being made in Washington. Also, since most project level funding decisions relating to stimulus funds are being made in statehouses and city halls, we continue to assist clients by making direct contact with officials involved in those decisions.

Department of Agriculture

On April 1, Agriculture Secretary Tom Vilsack announced that the first disbursements of $10 billion in Recovery Act funding for single family housing. The department has released an initial $1.76 billion in loan guarantees for home financing, a move that the administration estimates will save or create about 7,500 jobs.

Also on April 1, the amount of Supplemental Nutrition Assistance Program benefits for low-income Americans will increase making more money available for low-income and unemployed households to make purchases at grocery stores.

Department of Commerce

On April 2, Mark G. Seifert, of the Department of Commerce’s National Telecommunications and Information Administration (NTIA) testified before the House Science and Technology Committee’s Subcommittee on Communications, Technology, and the Internet. Mr. Seifert informed the subcommittee on the administrations progress on implementing the Broadband Technology Opportunities Program (BTOP), an entity created by the Recovery Act to distribute $4.7 billion in grants to spurt the development of broadband in rural and underserved areas. Mr. Seifert reported that NTIA is still in the process of acquiring the staff necessary to administer BTOP, but the agency is working diligently to release a Funding Opportunity Announcement within the next few months.

Department of Defense (DoD)

The DoD is actively preparing to begin awarding ARRA contracts after the newly-completed Federal Acquisition Circular (FAC)—containing the proposed ARRA Federal Acquisition Regulations (FAR)—is published in the Federal Register.

The DoD has listed the following Navy restoration and modernization projects that could potentially be awarded by the end of April:

  • Replace Elevators #37 and #40 Building 171, Norfolk Naval Shipyard, Norfolk, VA.
  • Replace Roof Mounted Boilers, Bachelor Quarters Building 3144 and Bachelor Quarters Building 3150, Naval Base San Diego, CA. 
  • Advance Meter Installation, Various Locations throughout Washington State. 
  • Replace HVAC and Modernize Board Hall Bachelor Quarters Complex, Buildings 30-34, Naval Station Great Lakes, IL. 
  • Renovate Ground Floor HVAC, Bldg 100, NOSC Bronx, NY
  • Parking Garage Repairs, National Maritime Intelligence Center, Suitland, MD.

The following link displays the complete DoD stimulus expenditure plan that was announced on March 20.

Army Corps of Engineers (USACE)

According to the USACE staff, OMB is currently in the process of reviewing pending ARRA projects, and a potential release date for a finalized list is unknown at this time.

Department of Education

Secretary Arne Duncan announced on April 1 that he released $44 billion of the more than $100 billion made available by the ARRA State Stabilization Fund. These funds are intended to restore cuts made by state and local budgets in an effort to prevent further job losses in education. The department issued guidance regarding the release of these funds which provides clarification detailing the proper use of recovery funds as well as the application that the states must submit in order to receive funding.

Additionally, the Education Department has made $11.4 billion available in ARRA funding for Title I, IDEA Parts B and C, Vocation Rehabilitation, and Independent Living Grants on April 1.

Department of Energy

On March 31, Energy Secretary Steven Chu announced $6 billion in new funding under the ARRA to accelerate environmental cleanup work and create thousands of jobs across 12 states. Projects identified for funding will focus on accelerating cleanup of soil and groundwater, transportation and disposal of waste, and cleaning and demolishing former weapons complex facilities. States that will receive this funding include: Washington ($1.961 billion), South Carolina ($1.615 billion), Tennessee ($755 million), Idaho ($468 million), New Mexico ($348 million), New York ($148 million), Ohio ($138 million), Utah ($108 million), Illinois ($99 million), Kentucky ($79 million), California ($62 million) and Nevada ($44 million).

Department of Health and Human Services

On March 27 the Department of Health and Human Services announced the funding levels for the formula block grants authorized by the Recovery Act and administered by the agency. A list detailing how the money will be distributed to each state is available at the agency’s recovery website.

Department of Homeland Security (DHS)

Currently, DHS 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. DHS spending plans for Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE) and the Transportation Security Administration (TSA) are currently under review at OMB.

Department of the Interior

The Department of the Interior has yet to obligate or distribute any of its ARRA funding. The department is working with OMB to finalize its competitive grants applications and will be post these as soon as they receive final approval.

Department of Justice (DOJ)

Currently, DOJ’s Office of Community Oriented Policing Services (COPS) is continuing to review applications. The Bureau of Justice Assistance (BJA) also posted a list of Frequently Asked Questions on their Recovery Act website for the following discretionary grant programs: 1) Combating Criminal Narcotics Activity Stemming from the Southern Border of the United States; 2) Assistance to Rural Law Enforcement to Combat Crime and Drugs; 3) Edward Byrne Memorial Competitive Grant Program; and 4) Correctional Facilities on Tribal Lands.

Department of Labor

To date, the Department of Labor has obligated nearly $4 billion out of the $23 billion in ARRA funding provided to the department but has only dispersed $150,000. Programs that have obligated funds include:

  • Recovery Act Adult Employment and Training Activities
  • Recovery Act Dislocated Worker Employment and Training Grants
  • Recovery Act Dislocated Worker Employment and Training Grants
  • Recovery Act Youth Activities
  • Recovery Act Community Service Employment
  • ARRA Funds—Transfer to State UI Accounts from Employment Security Administration Account (ESA) within the Unemployment Trust Fund (UTF)
  • Employment Service—Recovery Act Grants to States (Not a direct appropriation. To be expended from the ESA account in the UTF)

Additionally, the Labor Department has been busy at work conducting outreach and has added two additional target groups (veterans and disconnected youth) to the categories of new hires for which employers can receive tax credits through the Work Opportunity Tax Credit (WOTC). As

Department of Transportation

On March 30, DOT allocated funds for the Federal Lands Highway Program, including the remaining balance ($5.2 million) of Refuge Roads funds. To date, the department has obligated recovery funds for the following purposes:

  • grants in aid for airports
  • highway infrastructure investment
  • capital grants to the National Railroad Passenger Corporation
  • transit capital assistance

Additionally, the department is currently working to:

  • Finalize the risk management plan for implementation and oversight of ARRA projects and funding.
  • Circulate within the Federal Railroad Administration the internal draft of the strategic plan for high-speed rail and intercity passenger rail grant programs. It is expected that DOT and the Office of Management and Budget will complete their review of this draft by the third week of April to meet the congressional deadline. 
  • Develop a system to incorporate GIS data to map projects by location, state, type, and congressional district, in order to provide the public with a means to locate ARRA projects.

Department of the Treasury (DTR)

As part of the Administration’s strategy to prop-up the declining American auto industry, the Internal Revenue Service announced on Monday that certain 2009 purchases of new passenger vehicles may entitle buyers to deductions on state and local sales and excise taxes.

Limited to such taxes paid on up to $49,500 of the purchase price, the deduction applies to vehicle purchases after Feb. 16, 2009, and before Jan. 1, 2010. Additionally, the deduction will phase out for individual taxpayers with an adjusted gross income of $125,000-$135,000 and for joint filers with an adjusted gross income of $250,000-$260,000.

Environmental Protection Agency

Environmental Protection Agency (EPA) announced the creation of a national competition for $156 million in funding to jumpstart clean diesel projects through the ARRA on March 27. The projects will create jobs and reduce harmful diesel pollution. Nearly $18.5 million of this funding is slated for projects in EPA Region 2, which covers New Jersey, New York, Puerto Rico, the U.S. Virgin Islands and seven federally recognized Indian Nations. EPA is encouraging organizations and government entities to apply for the National Clean Diesel Funding Assistance Program. Applications are due by April 28, 2009.

EPA is accepting applications for funding from regional, state, local or tribal agencies or port authorities with jurisdiction over transportation or air quality. Applications will also be accepted from nonprofit organizations or institutions that represent or provide pollution reduction or educational services to people or organizations that own or operate diesel fleets or that have, as their principal purpose, the promotion of transportation or air quality. School districts, municipalities, metropolitan planning organizations, cities and counties are all eligible, provided that they fall within the definition above. ARRA gives precedence to projects that can be started and completed expeditiously.
 

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.