Wilmington, DE– For months now Congressional leaders in Washington have been debating economic recovery measures to best boost our economy and aid ailing industries. One of the most effective investments America can make for long-term success is an investment in its children. Tomorrow Congressman Mike Castle has an opportunity to make a critical investment in our children by voting for a recovery package in the U.S. House of Representatives that funds programs proven to prepare our children for school, work and life.
Prioritizing children through smart investments in programs that are both effective and can spend money quickly, and targeting help to those who are struggling, is the right thing to do for families and the economy. Economists including Mark Zandi at Moody's Economy.com have said that provisions that provide income support to struggling families - such as increasing unemployment benefits and food stamps - and that provide fiscal relief to states to prevent them from cutting services and raising taxes are rated among the highest in terms of the amount of economic activity they spur. Zandi notes that while many tax cuts have a lower "bang for the buck" in terms of stimulative effect, those tax benefits targeted on low and moderate income individuals and families, like the expansion in the EITC and the Child Tax Credit, are very stimulative.
The American Recovery and Reinvestment Act, H.R. 1, includes provisions that will provide immediate stimulus to help create jobs and makes long-term, targeted and responsible investments to keep our nation’s economy growing while at the same time improving the health, education and well-being of children. Millions of children would be aided by changes to the child tax credit; have access to child care and Head Start, and other early childhood development, education, youth job training, health care and nutrition programs. The current package would ultimately keep 1.1 million children out of poverty.
“The youngest and most vulnerable victims of today’s economic crisis are our children and tomorrow Congressman Castle has an opportunity to stand up for Delaware’s children while boosting the economy for all Americans,” said Bill Bentley, President and CEO of Voices for America’s Children and founding member of the CLC. “On behalf of children in Delaware and all children nationwide, the Children’s Leadership Council urges Congressman Castle to support the economic recovery package Delaware families so urgently need.”
The Children’s Leadership Council is a coalition of 36 leading national policy and advocacy organizations working together to improve the health, education and well-being of children and youth in order to prepare them for school, work and life.
Important Child/Youth-Related Provisions
Increase eligibility for the refundable portion of child credit. The package will increase the eligibility for the refundable child tax credit in 2009 and 2010. For 2008, the child tax credit is refundable to the extent of 15 percent of the taxpayer’s earned income in excess of $8,500. The bill would eliminate this floor for 2009 and 2010. This proposal is estimated to cost $18.272 billion over 10 years, helping an estimated 15.5 million poor children for tax year 2009.
Early Childhood Development:
· Child Care Development Block Grant: $2 billion to provide child care services for an additional 300,000 children in low-income families while their parents go to work. Today only one out of seven eligible children receives care.
· Head Start: $2.1 billion to provide comprehensive development services to help 110,000 additional children succeed in school ($1 billion for Head Start, and $1.1 billion for Early Head Start). Funds are distributed based on need. Only about half of all eligible preschoolers and less than 3 percent of eligible infants and toddlers participate in Head Start.
· IDEA Infants and Families: $600 million for formula grants to help states serve children with disabilities age 2 and younger.
K-12 Education:
· IDEA Special Education: $13 billion for formula grants to increase the federal share of special education costs and prevent these mandatory costs from forcing states to cut other areas of education.
· Title I Help for Disadvantaged Kids: $13 billion for grants to help disadvantaged kids in nearly every school district and more than half of all public schools reach high academic standards.
· Education for Homeless Children and Youth: $66 million for formula grants to states to provide services to homeless children including meals and transportation when high unemployment and home foreclosures have created an influx of homeless kids.
Higher Education:
· Pell Grants: $15.6 billion to increase the maximum Pell Grant by $500, from $4,850 to $5,350.
· College Work-Study: $490 million to support undergraduate and graduate students who work.
· Student Loan Limit Increase: Increases limits on unsubsidized Stafford loans by $2,000.
Helping Workers Find Jobs:
· Training and Employment Services: $1.2 billion for youth job training including funding to create up to one million summer jobs for youth, and $50 million in increased funds for the YouthBuild program.
Alleviating Hunger:
· Supplemental Nutrition Assistance: $20 billion to provide nutrition assistance to modest-income families and to lift restrictions that limit the amount of time individuals can receive food stamps.
· Afterschool Meals: $726 million to increase the number of states that provide free healthy dinners to children in need.
· Emergency Food Assistance Program: $150 million to purchase commodities for food banks to refill emptying shelves.
· Supplemental Nutrition Program Information Systems: $100 million to improve state management information systems for the WIC program.
Health Care:
· Medicaid Aid to States (FMAP): Approximately $87 billion to provide additional federal matching funds to help states maintain their Medicaid programs in the face of recession-driven revenue declines and caseload increases. The package will provide temporary subsidies to help families who have lost their jobs maintain their health care coverage through COBRA and create a temporary option for states to extend healthcare to displaced workers through their Medicaid programs. Increases in FMAP will also apply to Title IV-E and help states to and meet the needs of abused and neglected children foster care and support implementation of the kinship care provisions of the Fostering Connections to Success Act passed in October 2007.
· Prevention and Wellness Fund: $3 billion to fight preventable chronic diseases, the leading cause of deaths in the U.S., and infectious diseases. Preventing disease rather than treating illnesses is the most effective way to reduce healthcare costs. This includes Preventive Health and Health Services Block Grants for state and local public health departments, immunization programs, and evidence-based disease prevention.