Technology

Green Jobs

Money to Seed Recovery—Not to Fund it Permanently

Investment in Medical for Purposes of Growth

Reinvestment in Education and Training…

There is much to study to have a full comprehensive picture of the ARRA.  Here are the highlights as we see them.

• Accountability means you measure your outcomes
• Look at demographics, trends, policy and program objective measures
• Measure in a systematic way
• Measurement should not be obtrusive to the goal of the progra

Learnovation®, LLC is focused on assisting you with understanding policy and how to measure and prove your programs.  Here is an abbreviated summary of the over 1200 page American Recovery and Reinvestment Act (ARRA).

Health & Life Sciences

On February 13, 2009, the House passed the Conference Report to H.R. 1, the American Recovery and Reinvestment Act of 2009, by a vote of 246 to 183. That evening, the Senate also passed the Conference Report by a vote of 60 to 38. The final economic stimulus package provides a total investment of $787 billion to support infrastructure, schools, state budgets, tax cuts, biomedical research, renewable energy and health care for the unemployed. President Obama signed the bill into law on February 17, 2009, in Denver, Colorado.
This report provides an update on the final stimulus bill, with respect to key sectors and provisions of specific interest to the health and life science sector.
Key provisions:

• Comparative Effectiveness Research
• Research and Infrastructure
• Prevention and Wellness
• Medical Product Development and Procurement
• Training for Health Professionals
• Health Information Technolog

Comparative Effectiveness (CE) Research
The final stimulus bill retains $1.1 billion in funding for comparative effectiveness research. This is the same level that was proposed in the earlier House and Senate bills. Of that,

• $300 million will be administered by the Agency for Healthcare Research and Quality (AHRQ) to "carry out" CE research;
• $400 million will be administered by the National Institutes of Health (NIH) to "conduct or support" CE research; and
• $400 million will be administered by the Secretary of HHS to "accelerate the development and dissemination" of CE research.

The language of the bill walks a fine line: the word "clinical" was removed from the introductory section, suggesting that a broad array of evidence, including cost-effectiveness, would be the focus of research funded through CE dollars. At the same time, it recognizes that a "one-size-fits-all" approach to research will not be appropriate. The bill is also clear that CE funds are not intended to mandate coverage, reimbursement or other policies for any public or private payer. Instead, the funding should be used to encourage use of clinical registries, clinical data networks and other e-health data to generate outcomes data. Although the amounts provided to each agency are unambiguous, exactly what funds can and will be used for is not identified in the bill. We do know, however, that all three entities are currently engaged around CE research and expect that these efforts will evolve quickly in the coming weeks and months. In particular, NIH has formed a working group to discuss agency-wide priorities for CE research and will be consulting with AHRQ and the Secretary of HHS to set priorities and efficiently disseminate funding to appropriate projects.
The bill requires the Institute of Medicine (IOM) to consider stakeholder input in preparing a Report to Congress by June 30, 2009, on national priorities in comparative effectiveness research. The Secretary of HHS must submit an operating plan on how CE funding will be spent by July 30, 2009. Private entities will be eligible to receive funding to provide data and conduct research that contributes to national CE priorities.
Stakeholders should be actively engaged in the public comment period to set appropriate national priorities for comparative effectiveness research. They should consider whether their access to data or research capabilities position them to conduct comparative effectiveness research. Manufacturers should consider whether current evidence development plans are sufficiently robust to meet emerging comparative effectiveness evidence thresholds.
Stakeholders should also note that comparative effectiveness research is a top priority of Senate Finance Committee Chairman Max Baucus (D-MT). Although his proposed CE legislation is not included in the final stimulus package, he is expected to move those provisions later this year. Stakeholders should assess the implications of enacting multiple laws in this space and consider strategies for ensuring their priorities are included in all CE legislation moving forward.
NSF: The final stimulus bill includes a total of $3 billion for NSF, including $300 million for the major research instrumentation program, $200 million for academic facilities modernization and $400 million for major research equipment and facilities construction. The House-passed bill also provided $3 billion for NSF.
NIST: The final stimulus bill provides a total of $600 million for NIST, including $220 million for scientific and technical research, and $20 million for HIT activities to create and test standards related to health security and interoperability. The final stimulus bill also includes $180 million for a competitive grant construction program for research science buildings.
NIH: The final stimulus bill includes a total of $10.4 billion for NIH, with $8.2 billion going to the Director, the Institutes and Centers, and the Common Fund to support biomedical research and $500 million for buildings and facilities. The final stimulus bill also includes $1.3 billion for the National Center for Research Resources (NCRR), including $1 billion for the construction and renovation of extramural research facilities and $300 million for the acquisition of shared instrumentation and other capital research equipment. Also included is $400 million for Comparative Effectiveness Research(as described in previous section).
The House-passed bill proposed $1.5 billion for biomedical research, while the Senate proposed $2.7 billion for these activities. During the Senate's consideration of the bill, an amendment by Sen. Arlen Specter (R-PA) was adopted to raise the total NIH allocation to $10 billion. The final stimulus bill retains this overall amount and recommends that funds target research priorities such as “short-term grants that focus on specific scientific challenges; new research that expands the scope of ongoing projects; and research on public and international health priorities.” Although the specific funding mechanisms are not identified in the bill, report language indicates that funds allocated to the Director ($800 million) can be used to "enhance central research support activities, such as equipment for the clinical center or intramural activities, centralized information support systems and other relevant activities as determined by the Director."
NIH Acting Director Raynard Kington, M.D., Ph.D., has indicated that funds transferred to the Director, Institutes and Centers, and the Common Fund are likely to be distributed in three key ways:

Prevention and Wellness
The final stimulus bill includes a total of $1 billion for the Prevention and Wellness Fund. This figure is significantly lower than the amount included in the original House bill ($3 billion) but is an improvement over the Senate-passed bill, which did not include funding for a Prevention and Wellness fund.
Within this total, the final stimulus bill includes $50 million to states to reduce health care-associated infections. The House-passed bill proposed $150 million for these activities, while the Senate did not propose similar funding.
The final stimulus bill also includes $650 million for evidence-based clinical and community-based prevention and wellness strategies that deliver specific, measurable health outcomes that address chronic disease rates. The House-passed bill proposed $500 million for these activities, while the Senate did not propose similar funding.
Stakeholders are advised to assess their eligibility for funding under each proposal and consider engaging with the Department to ensure their interests are appropriately available as eligible uses of the funds.
Medical Product Development and Procurement
There is no funding for medical product development or procurement in the final stimulus bill, although both the House and Senate in early versions had substantial sums for these purposes. The House included $430 million for medical product research and development under the Biomedical Advance Rapid Development Authority (BARDA) and $420 million for medical products and activities related to pandemic flu preparedness and response. The Senate proposed $870 million for pandemic flu funding only.
Although the inclusion of substantial funding in early versions of the bill suggests some commitment to BARDA and pandemic flu funding, the failure of Congress to include this funding in the final stimulus bill suggests that stakeholders will need to engage more vigorously if they want to convince Congress of the merits and priority of that funding. Stakeholders should assess whether that engagement now would help determine whether funding is restored in the final FY09 appropriations bill to be considered in March or in upcoming FY10 funding.
Stakeholders should assess their eligibility for funding under HHS’s pandemic flu plan (http://www.hhs.gov/pandemicflu/plan/) as Congress is most likely to target funding to those purposes. Stakeholders should also assess their ability to respond to the Department’s interest in addressing a delay in vaccines during critical need periods and increasing the annual flu vaccine supply. Stakeholders should prepare to work with HHS to ensure eligibility for funding even where it may not be specified in the current plan.
Stakeholders should also be aware that various biodefense authorities related to these provisions are due to be renewed this year, and there will be an additional opportunity to affect the authorities and budgets of these programs at that time.
Training for Health Professionals
The final stimulus bill includes $500 million for health professions training programs. Within this total, $300 million is allocated for National Health Service Corps (NHSC), with 20 percent going toward field operations. The remaining $200 million is for health professions training for primary health care providers – family medicine, internal medicine, pediatricians, dentists and nurses. The House- and Senate-passed bills included $600 million for health professions training programs.
Health Information Technology
The final stimulus bill makes an estimated $21 billion total investment to support the adoption of Health Information Technologies, including an initial $2 billion infusion to support the activities of the Office of the National Coordinator (ONC) of Health IT and proposes an estimated $19 billion in Medicare and Medicaid incentive payments to providers for the adoption of Health IT.
Federal Leadership for the Nationwide Exchange of Health Information
The final stimulus bill codifies the ONC for the first time, sets up a Health Policy Committee and a Health Standards Committee that are both subject to Federal Advisory Committee Act (FACA), and leaves the fate of the work already completed by the American Health Information Community (AHIC) in some doubt. Stakeholders should consider engaging to ensure appropriate planning, beneficial use of authorities, stakeholder participation in the Committees and an appropriate role for "AHIC 2.0" and its standards bodies.
The ONC will have a new Chief Privacy Officer with responsibility over privacy, security and data stewardship matters, as well as coordinating with other public and private entities on HIT matters. There will also be a substantial new role for HIT in data development in a range of areas, including telemedicine, drug safety, biosurveillance, public health research, medical errors, etc. Stakeholders with interests in effective and reasonable privacy and security protections should consider surfacing potential candidates for this office and should actively engage the office with proposals.
Stakeholders should evaluate opportunities to influence policy development and disbursement of funds for health IT, including:

• The ONC must update the Federal HIT Strategic Plan. Stakeholders should evaluate their opportunities under the existing plan and ensure that the new plan is consistent with their objectives. Because the statute would alter the planning roles previously played by the Secretary, ONC and others, stakeholders should assess opportunities and threats and seek to influence new plan development.
• The ONC will be advised by a new Policy Committee and a new Standards Committee. The committees shall serve as a forum for broad stakeholder input, and the makeup will include providers, ancillary health care workers, consumers, purchasers, health plans, technology vendors, researchers and other experts. Stakeholders should consider appropriate engagement with these committees.
• Within 90 days of enactment of the final stimulus package, the Secretary of HHS shall report to Congress (but not necessarily the public or others) an operating plan for the funds. Stakeholders should seek to influence this plan before it goes out and should strive to get access to the plan after it is finalized.
• Accountability for the funds expended will be assessed by the Government Accountability Office (GAO). Stakeholders should consider engagement at the appropriate time with GAO on that assessment.
• For the first time, ONC is provided authority to charge “nominal fees” to providers for use of an electronic health record. Stakeholders should engage to ensure that the fees and circumstances of their being charged, as well as fee waiver options, do not adversely impact the stakeholder.

Privacy and Security of Personal Health Information
The final stimulus bill includes slightly modified privacy and security provisions, and will have a dramatic impact on patients, consumers, providers, plans and others involved in the development and use of health information technology and electronic health records of all types. Stakeholders are encouraged immediately to develop an understanding of their obligations and rights under the new legislation and to consider engaging with the Secretary of HHS and the Federal Trade Commission (FTC) as guidance and regulations are developed to implement the legislation. Some areas of particular focus are set forth below:
The legislation alters critical definitions in the statute in ways that will create new obligations and rights. Some inadvertent disclosures will now be considered a "breach" that triggers statutory obligations. Stakeholders should consider engaging with the Secretary as interim final rules are developed in the next 180 days to implement this provision.
Further, treatment of Personal Health Records (PHRs) is also altered in the statute and breach notification requirements are imposed. Stakeholders may also wish to engage as the FTC develops interim final rules to implement this provision.
Stakeholders who were previously considered business associates and were not subject to many of the security and privacy obligations under HIPAA will now be subject to the same standards and civil and criminal penalties as the providers and plans for whom they work. In addition, certain entities such as health information exchanges (HIEs) and regional health information organizations (RHIOs) are required to have business associate contracts. Stakeholders should consider working with the Secretary to develop the annual safeguards guidance required under the statute.
The Secretary will develop a national education program to educate the public about their privacy rights and the potential uses of their information. Stakeholders may wish to help develop or conduct this program and to interact with the new regional privacy advisors.
Stakeholders may also desire to participate in the development of the Secretary's guidance on what constitutes "minimum necessary" disclosures, particularly as it relates to disclosures necessary to improve patient outcomes and to manage chronic disease.
The statute has increased restrictions on the use of information for sales and marketing and restricts the costs associated with those activities that may be recouped from third parties. Stakeholders may wish to engage as the Secretary develops guidance on what is permitted as costs.
Funding for Infrastructure and Incentives for Adoption of HIT:
The final economic stimulus bill includes $2 billion in appropriations and $19 billion in Medicare and Medicaid incentive payments to providers and hospitals for the adoption and "meaningful use" of a certified EHR system.
Grants and Loans
The final stimulus bill gives some direction for the expenditure of the $2 billion in appropriated funds to "support the activities of" ONC, including providing planning and implementation grants to facilitate the exchange of information among organizations and grants to states to establish loan programs for provider purchase of HIT, enhanced utilization of HIT, personnel training and improving HIT security. Because the bill does not provide separate line item funding for each program, specific funding levels for each program or estimated award size can not yet be determined. Stakeholders interested in this funding should consider engaging with the department to ensure adequate funding levels for particular grant streams.
Each program differs with respect to purpose, funding source, eligible entities and uses and should be assessed in greater detail than can be set forth below. However, following is a rough outline for initial consideration by stakeholders:

• Immediate funding program to strengthen infrastructure and for other HIT activities. Funded through ONC and administered by agencies with relevant expertise (such as HRSA, AHRQ, CMS, CDC and Indian Health Service), grants will be made available for certain health information exchanges (HIEs), federal HHS agencies, providers, community health centers, 340B entities, telemedicine providers, holders of health information and public health departments. Specifically, the Secretary is required to invest $300 million to "support regional or sub-national efforts toward health information exchange."
• HIT implementation assistance. The ONC, and in consultation with NIST and other agencies with experience in IT services, will establish an HIT extension program to assist providers in adopting and using certified EHR technology. In addition, the ONC will support HIT Regional Extension Centers (affiliated with nonprofits) to provide assistance to providers, hospitals, CHCs, entities serving the underserved and small group practices.
• State grants to promote HIT. Funded through ONC, these grants will be made available to states or "state-designated nonprofits" for planning or implementation and other uses to expand electronic health information exchange.
• Competitive grants to states and Indian tribes for loan programs. Funded through ONC, these grants will be made available to states or Indian tribes to establish loans for health care providers to acquire and effectively utilize EHR technology.
• Demonstration program to integrate HIT into clinical education. This demo will enable the Secretary to make competitive awards to health professions or medical schools for curricula development and assistance to other universities for similar purposes.

Stakeholders listed above should consider their eligibility for programs and should consider early engagement with the Department to determine next steps.
Medicare Incentives
Providers: Incentive payments to providers for the adoption of Health IT are capped, and the amount of the annual cap decreases over time. The final stimulus bill proposes an annual limit of $15,000 in the first year of participation and decreases over the next four calendar years to $12,000, then to $8,000, then $4,000, then $2,000. For early adopters (those adopting in 2011 or 2012), the limit in those years is increased to $18,000. The final bill also increases incentive payments by 25 percent for professionals predominantly furnishing services in a rural health professional shortage area.
In terms of penalties imposed on providers who are not meaningful EHR users, the final bill proposes reducing to 99 percent the fee schedule amount paid to such providers in 2015 (or 98 percent for some users), 98 percent in 2016, 97 percent in 2017 and 97 percent or more in each subsequent year. The Secretary is permitted on a case-by-case basis to exempt a professional from the penalty if compliance would present a significant hardship, such as in the case of a rural provider without sufficient Internet access. 
Hospitals: Consistent with the House bill, incentive payments for qualified hospitals are calculated as the sum of a base amount ($2 million) added to its discharge related payment, multiplied by its Medicare share. These payments would be reduced over a four-year period. A hospital's discharge related payment amount would equal $200 for each discharge paid under IPPS starting with its 1,150th discharge through its 23,000th discharge. This total amount would be further adjusted by the Medicare share, which would be calculated according to a specified formula that takes into consideration inpatient hospital bed days attributed to Part A payments and inpatient hospital bed days attributed to charity care. The final stimulus bill also includes bonus payments for critical access hospitals (CAHs).
In terms of penalties, current law imposes a 2 percent reduction in market basket (MB) updates for IPPS hospitals that do not submit quality data (beginning in 2007, as required by the Reporting Hospital Quality Data for Annual Payment Update Program). Beginning in 2015, noncompliance will result in a 25 percent reduction in their annual MB update. Beginning in 2015, hospitals that are not meaningful EHR users would be subject to a reduction in their annual MB update for the remaining 3/4 of the update. Acute care hospitals being paid under a state's Medicare waiver would be subject to similar reductions beginning in 2015. The Secretary is permitted on a case-by-case basis to exempt certain hospitals from the penalty if compliance would present in a significant hardship, such as in the case of a rural hospital without sufficient Internet access.
Medicaid Incentives
The final stimulus bill authorizes $40 million for each of fiscal years 2009 through 2015 and $20 million for each succeeding fiscal year through 2019 for incentive payments to eligible providers (non-hospital based physicians, nurse midwives, nurse practitioners, certain pediatricians and physician assistants practicing in rural health clinics and federally-qualified health centers that are led by physician assistants), acute care hospitals, children's hospitals, rural health clinics and federally-qualified health centers. The final bill also authorizes a 100 percent federal match for a portion of payments attributable for certified EHR technology (including support services and maintenance) to eligible Medicaid providers and a 90 percent federal match for payment to the states for administrative expenses related to EHR technology payments. 
Providers: The bill makes providers eligible for a payment equal to 85 percent of their net allowable technology costs. The allowable costs for the purchase and initial implementation of EHR technology may not exceed $25,000 or include costs over a period of more than five years. Annual allowable costs not associated with initial implementation or purchase of the EHR technology may not exceed $10,000 per year or be made over a period of more than five years. Aggregate allowable costs for these eligible professionals may not exceed $63,750.
Hospitals: Payments to hospitals would be limited to amounts analogous to those specified for eligible hospitals under the Medicare incentive payments, calculated as a base amount plus an amount related to the total discharges for such a hospital. States may not pay more than 50 percent of the aggregate amount to a hospital in any year and must spread out payments to hospitals over at least three years.
Studies
The final stimulus bill requires the Secretary of HHS, by June 30, 2010, to conduct and complete a study determining whether payment incentives should be made available to health care providers who are receiving minimal or no payment incentives or other funding under this Act. The bill also requires the Secretary, by October 1, 2010, to study and report to Congress on the availability of open source Health IT systems to safety net providers. Stakeholders should consider engaging the Secretary to ensure appropriate information is considered for the report and that the report reaches the right conclusions.

Environment

Economic Stimulus Package Provisions For Environmental Law

The following programs are contained within the Environmental Protection Agency and are directed at environmental cleanup activities. Please note that a variety of agencies are assisting in the administration of these programs and certain deadlines and application procedures will apply. Some of the application deadlines are imminent.
Leaking Underground Storage Tank Trust Fund Program
$200 million for the Leaking Underground Storage Tank Trust Fund program. The Trust Fund provides money for cleanups at underground storage tank sites where the owner or operator is unknown, unwilling or unable to respond, or which require emergency action. To receive money from the Trust Fund, a state must enter into a cooperative agreement with the federal government to spend the money for its intended purpose. States use Trust Fund money to oversee corrective action by a responsible party and to clean up sites where no responsible party can be found. In Indiana, the Indiana brownfields program will be overseeing this funding, and the program is currently identifying potentially eligible sites through the designated technical consultants in each of the program's identified regions. It is important to be sure any potentially eligible site is identified and listed either through the community in which the site is located or through the technical consultant for that region immediately, as sites will only be considered if listed by March 4.
Hazardous Substance Superfund
$600 million for the Superfund Remedial program. Remedial Action involves the actual construction or implementation phase of Superfund site cleanup. This will apply only to Superfund sites.
State and Tribal Assistance Grants
$6.4 billion in grants to states and tribes to assist with enforcement and compliance of environmental laws. Of this funding, $100 million is set aside to carry out brownfields projects and $300 million is set aside for the Diesel Emission Reduction Act State grant program with the matching fund requirement waived.

Energy & Climate Change

On February 17, 2009, the President signed into law the American Recovery and Reinvestment Act. Not only will this new law serve as the foundation for the new Administration's economic recovery efforts, but the investments made in the law will attempt to spur growth in green technologies – including advances in renewable electricity, green buildings and other energy- and environmentally-conscious infrastructure.
The following is meant to be a general overview of the funding commitments that focus on energy, conservation and environmentally-conscious spending broken down by agency.
U.S. Environmental Protection Agency

• $4 billion in grants for the Clean Water State Revolving Fund.
• $2 billion in grants for the Drinking Water State Revolving Fund.
• $600 million to address uncontrolled releases from hazardous and toxic waste sites.
• $300 million for diesel emission reductions grants.
• $200 million for cleanup activities for the Leaking Underground Storage Program.
• $100 million for brownfields cleanup.

U.S. Department of Energy

• $6 billion in loan guarantees for the temporary program for Rapid Deployment of Renewable Energy and Electric Transmission Projects' Innovative Technology Loan Guarantee Program for renewable technologies and transmission technologies.
• $5 billion for the Weatherization Assistance Program to assist low-income families in improving the energy efficiency in their homes.
• $4.5 billion to modernize the electric grid, to include demand-responsive equipment, enhance security and reliability of the energy infrastructure, energy storage research, development, demonstration and deployment, and to facilitate recovery from disruptions from the energy supply.
• $3.2 billion for Energy Efficiency and Conservation Block Grants, including formula and competitive grants.
• $3.1 billion for State Energy Programs.
• $2.5 billion for energy efficiency and renewable energy research, development, demonstration and deployment activities.
• $2 billion for the manufacturing of advanced batteries and components, including advanced lithium-ion batteries, hybrid electrical systems, component manufacturers and software designers.
• $1.52 billion for a range of industrial carbon capture and energy efficiency improvement projects, including a small allocation for innovative concepts for beneficial CO2 reuse.
• $1 billion for fossil energy, coal technologies, carbon capture, coal mining technologies, oil and gas, oil and gas reservoirs, complex weld technology testing, and methane hydrate R&D programs.
• $800 million for the Clean Coal Power Initiative.
• $483 million for non-defense environmental cleanup.
• $400 million to support high-risk, high-payoff research to accelerate the innovation cycle for both traditional and alternative energy sources and energy efficiency through the newly-created Advanced Research Projects Agency - Energy (ARPA-E) .
• $400 million for qualified electric transportation projects that reduce emissions.
• $300 million for the Alternative Fueled Vehicles Pilot Grant Program to encourage the use of plug-in electric-drive vehicles or other emerging electric vehicle technologies.
• $300 million for state appliance rebate programs to support appliance efficiency.
• $50 million for site characterization activities for various geologic formations.
• $20 million for geologic sequestration research and training.

U.S. Department of Defense

• $4.24 billion for facilities sustainment, restoration and modernization, including investments in energy efficiency projects and to repair and modernize DOD facilities.
• $300 million for research, development, test and evaluation of projects for improvements in energy generation and efficiency, transmission, regulation, storage, and for use on military installations and within operational forces.
• $120 million for the Energy Conservation and Investment Program.
• $100 million for the Navy & Marine Corps energy conservation and alternative energy projects.

U.S. Department of Agriculture

• $1.38 billion in direct loans and grants for water and waste disposal facilities in rural areas.
• $650 million for the Forest Service's Capital Improvement and Maintenance, including consideration of alternative energy technologies.
• $50 million for wood-to-energy grants to promote increased utilization of biomass.

U.S. General Services Administration

• $4.5 billion to convert GSA facilities to high-performance green buildings.
• $300 million to purchase motor vehicles with higher fuel economy, including hybrids, electric vehicles and commercially available PHEVs.

Education

The American Recovery and Reinvestment Act provides approximately $100 billion in spending for education. The measure significantly expands the federal investment in education with a historic boost in funding to use education to improve our economy over the long term. The education priorities in the measure are aid to states, increases in Title I, IDEA, Pell and school modernization. These programs support what the new Secretary of Education calls our nation's "race to the top" by focusing on key reform areas: improving state standards and assessments, data systems, supply and equitable distribution of effective teachers and principals, and innovation.
The following is a breakdown of the bill's funding:
Title I, Elementary and Secondary Education Act
$13 billion through formula grants to help local districts close the achievement gap and improve school performance. $3 billion of these funds are provided for school improvement grants. Funds must be obligated by 2010.
Impact Aid
$100 million to allow greater participation of school districts impacted by both students whose parents are associated with the military and students residing on tribal lands.
Special Education - IDEA
$12 billion to help states and districts improve the educational outcomes of students with disabilities, with targeted funds for early childhood programs. Portions of these funds are directed to infants/toddlers ($500 million) and preschool programs ($400 million).
Education Technology Grants
$650 million for grants to improve student achievement through the use of technology in elementary and secondary schools.
Statewide Data Systems
$250 million to aid state education agencies in developing and implementing longitudinal data systems.
Homeless Education
$70 million to assist states with providing educational services to homeless youth.
Teacher Incentive Fund
$200 million for grants to support efforts to develop and implement performance-based teacher and principal compensation systems in high-need schools.
Teacher Quality
$100 million to improve teacher quality and training in the higher education community.
Higher Education

• Increase in Federal Pell Grant award from $500 to $5,350 for the 2009-10 academic year and to $5,550 for 2010-11.
• New money for Federal Work Study grants and Student Aid Administration.

State Fiscal Stabilization Fund
A total of $53.6 billion will be available upon enactment of the law through a variety of formulae, of which:

• Approximately $40 billion is directed to local school districts using existing funding formulas to restore cuts to state and local education budgets;
• $8 billion for public safety, education services – including K-12 and higher education school modernization, or other purposes;
• $4.35 billion to states as bonus grants for meeting key performance measures in education; and
• $650 million recognizing local educational agencies or schools that have significantly closed the achievement gap.

Need more details? Click here to access additional information on the impact of the ARRA on Education from the ASCD

 

Provisions Affecting Transportation
And Logistics Providers

Stimulus funding will have a direct impact on the transportation and logistics industry as a whole. Several examples of ways in which the logistics industry will be affected are as follows:

•  Over $4.5 billion has been allocated to the Department of Energy in the form of grants and loans. Some of these dollars will be used to identify, design and implement sustainable energy infrastructure projects and innovative technologies projects. Other funding is geared toward reducing fossil fuel emissions. Electric transportation is also a funding recipient, and an alternative fueled vehicles pilot grant program rounds out the allocation to the Energy Department.
• The Environmental Protection Agency is being allocated dollars to reduce diesel emissions through funding and loans provided to states and local governments for projects that reduce emissions. Projects funded through these grants require technology and equipment manufactured through three sectors: auto parts manufacturing, auto repair and maintenance and heavy duty truck manufacturing.
• The Department of Transportation has been allocated $6 billion for transit capital assistance. The funds will be used to purchase buses and equipment needed to provide transportation service and make improvements to intermodal and transit facilities.

Stakeholders should also note that comparative effectiveness research is a top priority of Senate Finance Committee Chairman Max Baucus (D-MT). Although his proposed CE legislation is not included in the final stimulus package, he is expected to move those provisions later this year. Stakeholders should assess the implications of enacting multiple laws in this space and consider strategies for ensuring their priorities are included in all CE legislation moving forward.

Provisions Affecting Manufacturers

A variety of provisions included in the economic stimulus package will provide a boost to the manufacturing sector of the economy. A few examples of ways in which the stimulus will affect manufacturers are as follows:

Funding for Labor, Health and Human Services and Education: Though the topic may be misleading, much of the funding in this category will be granted to municipalities with the end goal of building updates and increased energy efficiency. This provision also notes that all iron or steel utilized during construction for these projects must be produced in the U.S., unless the cost will increase the projected spend by more than 25%.

Housing and Urban Development was granted over $7 billion for construction projects and improved energy efficiency. Grants will be awarded through a competitive process to bidders throughout the United States.

Infrastructure funding, especially for rail and electric transportation, is included in a variety of provisions within the package. These provisions are designed to update and revamp existing infrastructure while exploring faster, "greener" ways to transport goods.

Science and research is also a big winner in the competition for funding, meaning that new ideas and products will be hitting the market. Much of this funding will be allocated through competitive grant processes, some of which are tied to institutions and some of which are independent