Frequently asked questions by citizens
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Where is the full text of The American Recovery and Reinvestment Act of 2009?
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What is the purpose of the American Recovery and Reinvestment Act?
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Does the Act prohibit the use of funds for certain activities?
What is recovery.wa.gov?
It’s a website with information about how Washington state uses federal recovery funding. Information about how state agencies are distributing funds will be posted soon.
Where is the full text of The American Recovery and Reinvestment Act of 2009?
Look here.
What is the purpose of the American Recovery and Reinvestment Act?
The Act, or federal recovery plan, is intended to:
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Create and save jobs
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Jump-start the economy
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Promote economic recovery and growth
What benefits do recovery funds offer?
recovery funds are intended to help:
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Modernize the state's infrastructure
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Enhance our energy independence
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Expand educational opportunities
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Increase access to health care
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Provide tax relief and protect those in greatest need
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Assist those most affected by the recession
What types of programs will be funded?
Funding is provided for a range of federal programs. Funding will increase or extend certain benefits payable under the Medicaid, unemployment compensation and nutrition assistance programs. Funding will also reduce income tax collections for individuals and corporations and make other changes to tax laws.
In sum, funding will support programs that:
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Dispense tax cuts to create jobs
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Provide assistance to workers hurt by the economy
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Save public sector jobs and protect vital services
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Create a framework for clean, efficient, American energy
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Transform our economy with science and technology
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Modernize roads, bridges, transit and waterways
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Overhaul education for the 21st century
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Expand access to health care and lower costs
How can my organization apply for recovery funds?
The Act distributes funds through already established channels whenever possible. Most funding will flow through the state agency that normally handles that type of funding. For example, funding for clean water projects will go through the state Department of Ecology and funding for drinking water projects through the state Department of Health.
How is the money distributed?
Funding is delivered in various ways, including grants based on formulas, competitive grants and discretionary grants.
How will funding decisions be made for recovery projects?
For money distributed by the state, decisions on project selection and level of funding will be made with the same process now used by state agencies and the Legislature. All major building decisions, major road projects and appropriations are subject to a rigorous review and approval process.
Other funds will be directly distributed by federal agencies through grants. Each federal agency will follow the guidelines established in the Recovery Act and/or its normal procedures.
I sent my project to the Office of Financial Management or the Governor's Office or the Washington State Association of Counties or another group. Is that all I need to do to be considered for funding ?
No. Having sent your project to the Governor’s Office or to OFM does not mean you have applied for a specific program or program funding. Because each fund source has unique criteria that must be met by the applicant, you must follow the application process each agency has established to be considered for funding.
Does the Act have requirements for infrastructure projects?
Yes. The Act requires that:
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Priority be given to projects where contracts can be awarded within 120 days of enactment of the plan;
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Can be completed in 3 years; and
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Are located in economically distressed areas.
In addition, the Act requires that funds given to a state or local government for infrastructure projects:
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Must be an appropriate use of taxpayer dollars;
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Can be started and finished quickly; and
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Can be used in a way that maximizes job creation and economic benefit.
Does the Act prohibit the use of funds for certain activities?
Yes. State, local and private entities cannot use federal recovery funding for a casino or other gambling establishment, aquarium, zoo, golf course or swimming pool.
Local school districts and higher education institutions are prohibited from using funds for:
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Payment of maintenance costs;
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Stadiums or other facilities primarily used for athletic contests or exhibitions or other events charging admission;
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Purchase or upgrade of vehicles;
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Improvement of stand-alone facilities whose purpose is not the education of children;
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Maintenance of systems, equipment or facilities;
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Modernization, renovation or repair of stadiums or other facilities primarily used for athletic contests or exhibitions or other events for which admission is charged to the public; or
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Modernization, renovation or repair of facilities used for sectarian instruction or religious worship, or in which a substantial portion of the functions of the facilities are subsumed in a religious mission.
Colleges and universities are required to use funds for education and general expenditures in such a way as to mitigate the need to raise tuition for in-state students. Funds can also be used for modernization, renovation or repair of facilities that are primarily used for instruction, research or student housing. This includes modernization, renovation and for repairs that are consistent with a recognized green building rating system.
What accountability and transparency steps are required?
The Act includes extensive provisions to ensure that states spend funds in ways that are consistent with its purposes (see above). Requirements include:
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Certifications by governors or local officials that infrastructure expenditures have been fully reviewed and are an appropriate use of tax dollars.
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Public access to contract and grant information, including requests for proposals for competitive grant programs.
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Provisions for federal oversight, reviews and audits, coordinated by the federal Recovery Accountability and Transparency Board.
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Access by federal inspectors and the Recovery Accountability and Transparency Board to information needed to ensure accountability at the national level.
States receiving funds are required to report how funds are being used to the federal government:
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Descriptions and status reports on recovery-related projects.
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Estimates of jobs saved or created by federal recovery activities.
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Estimates of tax increases averted because of federal recovery funds.
This information will be added to recovery.wa.gov as it becomes available.
Gov. Gregoire’s public accountability forums and Government Management Accountability and Performance process provide a framework to measure progress and results of the state’s recovery work. It is essential for taxpayers to know how state government is using federal recovery funds and the results produced by those investments.
Where can I find information on tax incentives?
Most tax incentives in the Act are tied to the federal tax code. The Internal Revenue Service is your best source of information. The Washington State Department of Revenue can provide assistance on state tax incentives tied to the Act.
Where can I learn more about how the American Recovery and Reinvestment Act will affect the federal budget?
The Congressional Budget Office has calculated the effect that Act will have on the federal budget deficit. Review those calculations in full or read a summary. For more information, visit recovery.gov or, for legislative information, the Library of Congress' THOMAS.
