Jeff Bingaman United States Senator from New Mexico

The Housing and Economic Recovery Act of 2008 differs from TARP in that it was designed to create new jobs.  TARP was a rescue package aimed at stabilizing financial institutions; this is a measure to jump start the economy.  A model for this economic recovery package could be President Roosevelt's New Deal, or President Eisenhower's highway investments.

I have heard from many New Mexicans about the way the financial meltdown is affecting them and their families.  I have also heard from many economists who span the political spectrum, and they all agree that we need to pass a significant recovery package if we are going to turn the economy around. 

Distribution of Stimulus Funding: Federal dollars will be distributed to states, local agencies like school districts, and through federal agencies for competitive grants.  Each state will allocate its funds according to its own needs and priorities—within certain parameters set forth by Congress.  The three requirements Congress has set for projects to receive stimulus package funding are:

• Funding must be spent on projects that will begin bidding promptly (frequently referred to as "shovel ready" projects);
• Projects must have a long-term economic impact; and
• Projects must create jobs.

We have received requests from communities to set aside funding for specific projects.  There will be no so-called "earmarks" in this legislation.  President Obama has also said his administration will take the unprecedented step of disclosing on the Internet how the funding is being spent. 

Priorities in the Stimulus Package:  President Obama and Congress have identified several broad major priorities for federal funding to be used in this stimulus package:

• Infrastructure: such as highways and bridges, but also including restructuring the nation's energy grid;
• Energy: including tax credits for producers of solar panels and  "green" energy in order to reach our goal of energy independence; and
• Health and Education: funding to go directly to hospitals, universities, schools and districts.

There are numerous opportunities in New Mexico to use stimulus funding to invest in roads and water projects, and particularly in the area of clean energy technology, where our state is a national leader.  Communities should already be in contact with the appropriate state or federal agency and have completed all required reviews and approvals so that funding can be awarded as soon as possible after the president signs the bill into law.

Further Information: The U.S. Department of Treasury has an up-to-date tally on news and information regarding the stimulus package and all other economic developments.

And as always, if you have comments or other questions, please don't hesitate to contact my office.