House Adopts FY2009 Continuing Funding Resolution

EDA to Receive $400 Million in Disaster Assistance Funding

On September 24, the House of Representatives adopted a measure (HR 2638) that provides continuing appropriations for federal programs into March 2009. The bill now awaits Senate consideration.

In general, the continuing resolution (CR) funds federal programs at the FY2008 appropriated levels through March 6, 2009. Programs such as the Economic Development Administration (EDA), Community Development Block Grant (CDBG) program, Workforce Investment Act (WIA) and Aging programs will be funded at the existing level.

None of the 12 FY2009 appropriations bills have been adopted by Congress this year. Congressional Democrats have been loathe to enact any spending measure over a Presidential threat to veto any bill that exceeds discretionary spending limits established in the budget request. Instead, Democratic leaders will wait until the outcome of the November elections in hopes of dealing with an administration that is more supportive of their domestic spending priorities.

Funding above the FY2008 level is provided for several programs, including:

• Auto Efficiency Loans: $7.5 billion to support $25 billion in loans to help American automakers to update factories in order to build more fuel efficient vehicles
• LIHEAP: $5.1 billion for the Low-Income Home Energy Assistance Program (LIHEAP), $2.5 billion over current funding, to help offset rising home energy costs. The bill also includes $250 million for the Department of Energy’s weatherization assistance programs
• Census: $2.9 billion for the Bureau of the Census to ramp up for the 2010 Decennial Census
  

The package also includes nearly $650 billion for three security-related spending bills, which will not be covered by the CR, including:

• Defense Appropriations: $487.7 billion for FY2009, $4 billion under the president’s request and $32.4 billion under current spending
• Military Construction-VA Appropriations: $118.9 billion for military construction and veteran’s programs for FY2009. It includes $8.8 billion to support the 2005 Base Realignment and Closure (BRAC) process as well as $458 million for the 1990 BRAC process.
• Homeland Security Appropriations: $41.2 billion for FY 2009, $2.5 billion over current funding and $2.4 billion over the administration’s request. It includes $950 million for the State Homeland Security Grant program, $173 million over the administration’s request.
  

The bill also provides a total of $22.9 billion in disaster assistance, above the amounts provided in the CR, to help communities respond to recent disasters, including:

• Economic Development Administration (EDA): $400 million for “disaster relief, long-term recovery, and restoration of infrastructure related to the consequences of hurricanes, floods and other natural disasters occuring during 2008.” This is funding above and beyond that provided by the CR.
• CDBG: $6.5 billion the help communities recover from disasters for efforts including providing temporary housing, repairing and replacing damaged homes and public infrastructure, and for economic development activities
• Social Services Block Grant program: $600 million
• Emergency Highway Relief: $850 million to help states repair roads and bridges damaged by disasters and additional $20 million is for Class II and III (short line) railroads damaged by recent disasters
• Small Business Administration: $799 million for loans and technical assistance to business and homeowners
• USDA Rural Development: $150 million, of which $59 million is for single and multi-family housing, $40 million for community facilities, $26 million for utilities, and $25 million for business activities

For additional information, contact NADO Legislative Director Jason Boehlert at 202.624.8590 or jboehlert@nado.org.
[Return to Top]