Text of President Obama's Remarks on His Deficit Reduction Plan of Sept 19, 2011

from the White House Press Office


THE PRESIDENT: Good morning, everybody. Please have a seat.


A week ago today, I sent Congress the American Jobs Act. It’s a plan that will lead to new jobs for teachers, for construction workers, for veterans, and for the unemployed. It will cut taxes for every small business owner and virtually every working man and woman in America. And the proposals in this jobs bill are the kinds that have been supported by Democrats and Republicans in the past. So there shouldn’t be any reason for Congress to drag its feet. They should pass it right away. I'm ready to sign a bill. I've got the pens all ready.


Now, as I said before, Congress should pass this bill knowing that every proposal is fully paid for. The American Jobs Act will not add to our nation’s debt. And today, I’m releasing a plan that details how to pay for the jobs bill while also paying down our debt over time.


And this is important, because the health of our economy depends in part on what we do right now to create the conditions where businesses can hire and middle-class families can feel a basic measure of economic security. But in the long run, our prosperity also depends on our ability to pay down the massive debt we’ve accumulated over the past decade in a way that allows us to meet our responsibilities to each other and to the future.


During this past decade, profligate spending in Washington, tax cuts for multi-millionaires and billionaires, the cost of two wars, and the recession turned a record surplus into a yawning deficit, and that left us with a big pile of IOUs. If we don’t act, that burden will ultimately fall on our children’s shoulders. If we don’t act, the growing debt will eventually crowd out everything else, preventing us from investing in things like education, or sustaining programs like Medicare.


So Washington has to live within its means. The government has to do what families across this country have been doing for years. We have to cut what we can’t afford to pay for what really matters. We need to invest in what will promote hiring and economic growth now while still providing the confidence that will come with a plan that reduces our deficits over the long-term.


These principles were at the heart of the deficit framework that I put forward in April. It was an approach to shrink the deficit as a share of the economy, but not to do so so abruptly with spending cuts that would hamper growth or prevent us from helping small businesses and middle-class families get back on their feet.


It was an approach that said we need to go through the budget line-by-line looking for waste, without shortchanging education and basic scientific research and road construction, because those things are essential to our future. And it was an approach that said we shouldn't balance the budget on the backs of the poor and the middle class; that for us to solve this problem, everybody, including the wealthiest Americans and biggest corporations, have to pay their fair share.


Now, during the debt ceiling debate, I had hoped to negotiate a compromise with the Speaker of the House that fulfilled these principles and achieved the $4 trillion in deficit reduction that leaders in both parties have agreed we need -- a grand bargain that would have strengthened our economy, instead of weakened it. Unfortunately, the Speaker walked away from a balanced package. What we agreed to instead wasn’t all that grand. But it was a start -- roughly $1 trillion in cuts to domestic spending and defense spending.


Everyone knows we have to do more, and a special joint committee of Congress is assigned to find more deficit reduction. So, today, I’m laying out a set of specific proposals to finish what we started this summer -- proposals that live up to the principles I’ve talked about from the beginning. It’s a plan that reduces our debt by more than $4 trillion, and achieves these savings in a way that is fair -- by asking everybody to do their part so that no one has to bear too much of the burden on their own.


All told, this plan cuts $2 in spending for every dollar in new revenues. In addition to the $1 trillion in spending that we’ve already cut from the budget, our plan makes additional spending cuts that need to happen if we’re to solve this problem. We reform agricultural subsidies -- subsidies that a lot of times pay large farms for crops that they don't grow. We make modest adjustments to federal retirement programs. We reduce by tens of billions of dollars the tax money that goes to Fannie Mae and Freddie Mac. We also ask the largest financial firms -- companies saved by tax dollars during the financial crisis -- to repay the American people for every dime that we spent. And we save an additional $1 trillion as we end the wars in Iraq and Afghanistan.


These savings are not only counted as part of our plan, but as part of the budget plan that nearly every Republican on the House voted for.


Finally, this plan includes structural reforms to reduce the cost of health care in programs like Medicare and Medicaid. Keep in mind we've already included a number of reforms in the health care law, which will go a long way towards controlling these costs. But we're going to have to do a little more. This plan reduces wasteful subsidies and erroneous payments while changing some incentives that often lead to excessive health care costs. It makes prescriptions more affordable through faster approval of generic drugs. We’ll work with governors to make Medicaid more efficient and more accountable. And we’ll change the way we pay for health care. Instead of just paying for procedures, providers will be paid more when they improve results -- and such steps will save money and improve care.


These changes are phased in slowly to strengthen Medicare and Medicaid over time. Because while we do need to reduce health care costs, I’m not going to allow that to be an excuse for turning Medicare into a voucher program that leaves seniors at the mercy of the insurance industry. And I'm not going to stand for balancing the budget by denying or reducing health care for poor children or those with disabilities. So we will reform Medicare and Medicaid, but we will not abandon the fundamental commitment that this country has kept for generations.


And by the way, that includes our commitment to Social Security. I've said before, Social Security is not the primary cause of our deficits, but it does face long-term challenges as our country grows older. And both parties are going to need to work together on a separate track to strengthen Social Security for our children and our grandchildren.


So this is how we can reduce spending: by scouring the budget for every dime of waste and inefficiency, by reforming government spending, and by making modest adjustments to Medicare and Medicaid. But all these reductions in spending, by themselves, will not solve our fiscal problems. We can’t just cut our way out of this hole. It’s going to take a balanced approach. If we’re going to make spending cuts -- many of which we wouldn’t make if we weren’t facing such large budget deficits -- then it’s only right that we ask everyone to pay their fair share.


You know, last week, Speaker of the House John Boehner gave a speech about the economy. And to his credit, he made the point that we can’t afford the kind of politics that says it’s “my way or the highway.” I was encouraged by that. Here’s the problem: In that same speech, he also came out against any plan to cut the deficit that includes any additional revenues whatsoever. He said -- I'm quoting him -- there is “only one option.” And that option and only option relies entirely on cuts. That means slashing education, surrendering the research necessary to keep America’s technological edge in the 21st century, and allowing our critical public assets like highways and bridges and airports to get worse. It would cripple our competiveness and our ability to win the jobs of the future. And it would also mean asking sacrifice of seniors and the middle class and the poor, while asking nothing of the wealthiest Americans and biggest corporations.


So the Speaker says we can’t have it "my way or the highway," and then basically says, my way -- or the highway. (Laughter.) That’s not smart. It’s not right. If we’re going to meet our responsibilities, we have to do it together.


Now, I’m proposing real, serious cuts in spending. When you include the $1 trillion in cuts I’ve already signed into law, these would be among the biggest cuts in spending in our history. But they’ve got to be part of a larger plan that’s balanced –- a plan that asks the most fortunate among us to pay their fair share, just like everybody else.


And that’s why this plan eliminates tax loopholes that primarily go to the wealthiest taxpayers and biggest corporations –- tax breaks that small businesses and middle-class families don’t get. And if tax reform doesn't get done, this plan asks the wealthiest Americans to go back to paying the same rates that they paid during the 1990s, before the Bush tax cuts.


I promise it’s not because anybody looks forward to the prospects of raising taxes or paying more taxes. I don’t. In fact, I’ve cut taxes for the middle class and for small businesses, and through the American Jobs Act, we’d cut taxes again to promote hiring and put more money into the pockets of people. But we can’t afford these special lower rates for the wealthy -– rates, by the way, that were meant to be temporary. Back when these first -- these tax cuts, back in 2001, 2003, were being talked about, they were talked about temporary measures. We can’t afford them when we’re running these big deficits.


Now, I am also ready to work with Democrats and Republicans to reform our entire tax code, to get rid of the decades of accumulated loopholes, special interest carve-outs, and other tax expenditures that stack the deck against small business owners and ordinary families who can’t afford Washington lobbyists or fancy accountants. Our tax code is more than 10,000 pages long. If you stack up all the volumes, they’re almost five feet tall. That means that how much you pay often depends less on what you make and more on how well you can game the system, and that's especially true of the corporate tax code.


We’ve got one of the highest corporate tax rates in the world, but it’s riddled with exceptions and special interest loopholes. So some companies get out paying a lot of taxes, while the rest of them end up having to foot the bill. And this makes our entire economy less competitive and our country a less desirable place to do business.


That has to change. Our tax code shouldn’t give an advantage to companies with the best-connected lobbyists. It should give an advantage to companies that invest in the United States of America and create jobs in the United States of America. And we can lower the corporate rate if we get rid of all these special deals.


So I am ready, I am eager, to work with Democrats and Republicans to reform the tax code to make it simpler, make it fairer, and make America more competitive. But any reform plan will have to raise revenue to help close our deficit. That has to be part of the formula. And any reform should follow another simple principle: Middle-class families shouldn’t pay higher taxes than millionaires and billionaires. That’s pretty straightforward. It’s hard to argue against that. Warren Buffett’s secretary shouldn’t pay a higher tax rate than Warren Buffett. There is no justification for it.


It is wrong that in the United States of America, a teacher or a nurse or a construction worker who earns $50,000 should pay higher tax rates than somebody pulling in $50 million. Anybody who says we can’t change the tax code to correct that, anyone who has signed some pledge to protect every single tax loophole so long as they live, they should be called out. They should have to defend that unfairness -- explain why somebody who's making $50 million a year in the financial markets should be paying 15 percent on their taxes, when a teacher making $50,000 a year is paying more than that -- paying a higher rate. They ought to have to answer for it. And if they’re pledged to keep that kind of unfairness in place, they should remember, the last time I checked the only pledge that really matters is the pledge we take to uphold the Constitution.


Now, we’re already hearing the usual defenders of these kinds of loopholes saying this is just “class warfare.” I reject the idea that asking a hedge fund manager to pay the same tax rate as a plumber or a teacher is class warfare. I think it’s just the right the thing to do. I believe the American middle class, who've been pressured relentlessly for decades, believe it’s time that they were fought for as hard as the lobbyists and some lawmakers have fought to protect special treatment for billionaires and big corporations.

Nobody wants to punish success in America. What’s great about this country is our belief that anyone can make it and everybody should be able to try -– the idea that any one of us can open a business or have an idea and make us millionaires or billionaires. This is the land of opportunity. That’s great. All I’m saying is that those who have done well, including me, should pay our fair share in taxes to contribute to the nation that made our success possible. We shouldn’t get a better deal than ordinary families get. And I think most wealthy Americans would agree if they knew this would help us grow the economy and deal with the debt that threatens our future.


It comes down to this: We have to prioritize. Both parties agree that we need to reduce the deficit by the same amount -- by $4 trillion. So what choices are we going to make to reach that goal? Either we ask the wealthiest Americans to pay their fair share in taxes, or we’re going to have to ask seniors to pay more for Medicare. We can’t afford to do both.


Either we gut education and medical research, or we’ve got to reform the tax code so that the most profitable corporations have to give up tax loopholes that other companies don’t get. We can’t afford to do both.


This is not class warfare. It’s math. (Laughter.) The money is going to have to come from someplace. And if we’re not willing to ask those who've done extraordinarily well to help America close the deficit and we are trying to reach that same target of $4 trillion, then the logic, the math says everybody else has to do a whole lot more: We’ve got to put the entire burden on the middle class and the poor. We’ve got to scale back on the investments that have always helped our economy grow. We’ve got to settle for second-rate roads and second-rate bridges and second-rate airports, and schools that are crumbling.


That’s unacceptable to me. That’s unacceptable to the American people. And it will not happen on my watch. I will not support -- I will not support -- any plan that puts all the burden for closing our deficit on ordinary Americans. And I will veto any bill that changes benefits for those who rely on Medicare but does not raise serious revenues by asking the wealthiest Americans or biggest corporations to pay their fair share. We are not going to have a one-sided deal that hurts the folks who are most vulnerable.


None of the changes I’m proposing are easy or politically convenient. It’s always more popular to promise the moon and leave the bill for after the next election or the election after that. That’s been true since our founding. George Washington grappled with this problem. He said, “Towards the payment of debts, there must be revenue; that to have revenue there must be taxes; [and] no taxes can be devised which are not more or less inconvenient and unpleasant.” He understood that dealing with the debt is -- these are his words -- “always a choice of difficulties.” But he also knew that public servants weren’t elected to do what was easy; they weren’t elected to do what was politically advantageous. It’s our responsibility to put country before party. It’s our responsibility to do what’s right for the future.


And that’s what this debate is about. It’s not about numbers on a ledger; it’s not about figures on a spreadsheet. It’s about the economic future of this country, and it’s about whether we will do what it takes to create jobs and growth and opportunity while facing up to the legacy of debt that threatens everything we’ve built over generations.


And it’s also about fairness. It’s about whether we are, in fact, in this together, and we’re looking out for one another. We know what’s right. It’s time to do what’s right.


Thank you very much. (Applause.)

Durbin Announces $6 Million in Recovery Act Funding for Green Job Training in Illinois

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that the Department of Labor (DOL) has awarded a $6,000,000 State Energy Partnership and Training grant to the Illinois Department of Commerce and Economic Opportunity through the American Recovery and Reinvestment Act. Today’s funding will be used to implement projects such as the Greater Rockford Solar Initiative and the Chicago Green Jobs for All Initiative, both of which provide green job training and certification.

“Creating good-paying jobs and promoting a clean energy future are two main goals of the Recovery Act,” said Durbin. “This funding will make a significant investment in the effort to reduce the carbon footprint of residents and businesses in Illinois while bringing an estimated 3,000 workers into a new industry that will drive our economy in the years to come.”

The Illinois Department of Commerce and Economic Opportunity plans to use this funding to train and place an estimated 1,310 workers in energy efficient occupations, as well as aid approximately 1,700 workers in earning industry-recognized degrees. Earlier today the DOL announced 34 grants nationwide ranging from $2 million to $6 million each. A total of $440 million in Green Job grant funding has been made available by the DOL over the last month. State Energy Partnership and Training grants are designed to teach workers the skills required in emerging industries such as energy efficiency and renewable energy.

Durbin Announces $28 Million in Recovery Act Funding for Energy Efficiency Improvements

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that the Department of Energy (DOE) has awarded $28,740,800 in funding to three Illinois communities through the American Recovery and Reinvestment Act to help improve energy efficiency, reduce energy use and fossil fuel emissions and create green jobs locally.

“Creating jobs and securing our environmental future are at the heart of the Recovery Act,” said Durbin. “This funding will make a significant investment in the effort to reduce the carbon footprint of residents and businesses in the Chicagoland area.”

Today’s funding will be used for activities such as energy audits, residential and commercial building retrofits, the development and implementation of advanced building codes and inspections and the creation of financial incentive programs for energy efficiency improvements. The following communities will receive funding:

· City of Chicago: $27,648,800
· City of Des Plaines: $576,900
· Village of Hoffman Estates: $515,100

Durbin Announces Nearly $1.5 Million in Recovery Act Funding to Implement Electronic Health Records

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that the Department of Health and Human Services (HHS) has awarded $1,496,671 in funding through the American Recovery and Reinvestment Act to Illinois health networks to implement electronic health records. The HHS’s Health Resources and Services Administration awarded $27.8 million in Recovery Act funding to health centers nationwide for implementation of electronic health records and other health information technology innovations.

“Because they can be shared instantaneously with multiple doctors and can be transmitted hundreds of miles in seconds, electronic health records are an effective tool for improving the quality of health care and saving lives,” said Durbin. “Today’s Recovery Act funding will create jobs and help achieve President Obama’s goal of universal adoption of electronic health records by 2014.”

The following health networks will receive funding:

• Springfield, Illinois: $750,000 in funding for the Illinois Primary Care Association to support electronic health record implementation;
• Chicago, Illinois: $746,671 in funding for the Near North Health Services Corporation to support electronic health record implementation.

HRSA’s network of 1,100 health center grantees across the nation provide health care at more than 7,000 sites, ranging from large medical facilities to clinics and mobile vans. In 2007, health centers served 16.1 million patients, regardless of their ability to pay. Charges for services are set according to income, and only nominal fees are collected from the poorest patients. Nationally, about 39 percent of health center patients have no health insurance.

Durbin Announces Nearly $7 Million in Recovery Act Funding for Illinois Environmental Programs

From the Office of U.S. Senator Dick Durbin

July 21, 2009 - [WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that the Environmental Protection Agency (EPA) and EPA Region 5 have awarded $6,962,635 in funding through the American Recovery and Reinvestment Act to three environmental programs in Illinois.

“Today’s funding will improve the quality of the air we breathe and the water we drink while creating jobs across Illinois,” said Durbin. “It is not only good for our bodily health, but also the health of our state’s economy.”

The following Illinois communities and agencies will receive funding:

• City of Chicago: $1,000,000 in funding for projects to cut emissions and fuel usage from the city’s diesel fleet. These clean diesel projects will create or retain roughly 23 jobs while protecting Chicago’s air quality by reducing harmful diesel emissions by 313 tons per year.
• Illinois Environmental Protection Agency: $4,172,335 in funding to clean up diesel vehicles and equipment in the state. These clean diesel projects will create 123 jobs while protecting Illinois’ air quality by involving 675 eligible diesel vehicles or engines.
• Illinois Environmental Protection Agency: $1,790,300 in funding for water quality management planning to determine the nature, extent, and causes of water pollution problems, and to develop plans to solve those problems.

Durbin Announces $37 Million in Recovery Act Funding for Community Health Centers in Illinois

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that 36 community health centers in Illinois will receive $ 37,435,380 in grant funding through the American Recovery and Reinvestment Act. The Capital Improvement Grants (CIP) grants, allocated by the U.S. Department of Health and Human Services (HHS), will support the construction, repair and renovation of health centers nationwide as well as allow health centers to purchase new health information technology systems and adopt electronic health records. With these new funds, health centers will be to address immediate and pressing facility and equipment needs and create some much needed health center and construction-related jobs.

“Last year, over 1.1 million people in Illinois were treated at community health centers which administer health care to low-income families, many without health insurance,” said Durbin. “Today’s funding will support this critically important work and lead to economic growth in many underserved communities as health centers serve as a key source of local employment and economic activity.”

The CIP grants are part of $851 million in nationwide funding that was released today by HHS for more than 1,500 health centers. It is expected that with these new funds, health centers will be able to increase access to health care for millions of Americans and address immediate and pressing health center facility and equipment needs. More than 18 million Americans rely on health centers to keep them healthy, even if they can’t afford to pay for their care.

This is the third set of health center grants provided though the Recovery Act. On March 2, $155 million in funding was announced to establish 126 new health centers nationwide – four in Illinois. On March 27, $338 million in funding was announced to expand service and hours of operation at 1,126 health centers nationwide – 36 in Illinois.

The following Illinois health centers will receive funding under today’s announcement:

Health Centers around the State

• Anna: $699,960 in funding for Rural Health, Inc.
• Aurora: $1,147,645 in funding for Visiting Nurse Association of Fox Valley
• Carbondale: $1,033,300 in funding for Community Health & Emergency Services, Inc.
• Carterville: $1,032,460 in funding for Shawnee Health Service
• Chicago Heights: $2,449,295 in funding for Aunt Martha’s Youth Service Center, Inc.
• Christopher: $1,346,095 in funding for Christopher Rural Health Planning Corp.
• Decatur: $832,120 in funding for Community Health Improvement
• Elgin: $880,000 in funding for Greater Elgin Family Care Center
• Harvey: $1,035,085 in funding for Family Christian Health Center
• Joliet: $949,090 in funding for Will County Health Department / Will County Community Health Center
• Oak Park: $1,380,640 in funding for PCC Community Wellness Center
• Oquawka: $544,980 in funding for Henderson County Rural Health Center, Inc.
• Peoria: $616,030 in funding for Heartland Community Health Clinic
• Rock Falls: $616,240 in funding for Whiteside County Health Department and Whiteside County Community Health Clinic, Inc.
• Rockford: $1,652,800 in funding for Crusaders Central Clinic Association
• Sauget: $2,500,000 in funding for Southern Illinois Healthcare Foundation
• Springfield: $773,075 in funding for Central Counties Health Center, Inc.
• Virginia: $347,790 in funding for Cass County Health Department
• Waukegan: $1,715,660 in funding for Lake County Health Department and Community Health Center

Chicago Health Centers

• Access Community Health Network: $2,500,000
• Alivio Medical Center: $1,011,845
• Asian Human Services Family Health Center, Inc.: $393,010
• Beloved Community Family Wellness Center: $292,560
• Chicago Family Health Center, Inc.: $938,135
• Christian Community Health Center: $768,770
• Circle Family Health Care: $598,985
• Community Health Partnership of Illinois: $545,680
• Erie Family Health Center, Inc.: $1,294,085
• Friend Family Health Center, Inc.: $1,097,840
• Heartland Health Outreach, Inc.: $634,090
• Heartland International Health Center: $717,915
• Lawndale Christian Health Center: $1,649,370
• Near North Health Service Corporation: $1,418,300
• Primecare Community Health, Inc.: $724,075
• TCA Health Inc.: $550,965
• University of Illinois at Chicago: $747,490

Durbin Announces $3.55 Million in Recovery Act and General EPA Funding for Environmental Cleanup in Illinois

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that Illinois will receive a total of $3.55 million in funding through the Environmental Protection Agency (EPA) grant program and the American Recovery and Reinvestment Act for the assessment and cleanup of properties where hazardous chemical or pollutants may be present. The funding will go toward the renewal and revitalization of distressed industrial and commercial sites, with a goal of turning problem properties into productive business and community institutions.

“This funding will be the catalyst for revitalization that will create jobs and spur business development,” said Durbin. Not only is this good news for the environment, the health and well-being of Illinois citizens – this is good news for local economies.”

Of the estimated $111.9 million in total EPA funding announced nationwide, $74.6 million of the funding will be allocated through the general EPA grant program and $37.3 million will be made possible through the Recovery Act.

The following Illinois applicants will receive funding:

• Blue Island: $200,000 for the cleanup of an uncontrolled landfill.
• Dixmoor: $200,000 for the cleanup of the 13-acre Dixmoor Parcels site.
• Freeport: $600,000 for the cleanup of three now-vacant manufacturing sites.
• Rockford: $200,000 for the cleanup of the former Ingersoll site.
• South Suburban Mayors & Managers Association: $1,000,000 for assessment and plans.
• Southwestern Illinois Development Authority: $400,000 for assessment and plans.
• Stephenson County: $400,000 for assessment and community outreach activities.
• Chicago Heights: $400,000 for assessment and community outreach activities.
• Rock Island: $150,000 for assessment and community involvement activities.

Durbin Announces $1.2 Million in Recovery Act Funding for NIH Research in Illinois

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced that Illinois will receive $1,275,385 in funding through the American Recovery and Reinvestment Act for National Institutes of Health research programs. The following programs in Illinois will receive funding:

• University of Illinois at Chicago: $196,250 in funding for research that may lead to the development of a novel therapy that could reduce the risk of post-operative cognitive deficits from cardiopulmonary bypass surgeries.
• University of Illinois at Urbana-Champaign: $397,080 in funding for research to understand catalysis, effector binding, drug design. Pulsed Electron Paramagnetic Resonance is an ideal approach for investigation of the protein environment.
• University of Chicago: $230,250 in funding to study an herb mixture that actually increases a type of oxidant stress in the heart that may help condition it and protect against future heart attack injury.
• University of Chicago: $195,000 in funding for research that will explore an approach to treating oral mucositis, a common side effect of radiation therapy and chemotherapy in cancer patients.
• University of Chicago: $74,930 in funding for a study to trace the connection between pain and depression, including stress hormone effects, in girls entering adolescence.
• Southern Illinois University Carbondale: $181,875 in funding for research that will provide the first translational step towards providing evidence-based information regarding the use of ginseng and its constituent-enriched extracts in complementary breast cancer therapy.

Text of President Obama's Remarks on the Economy

2009

Remarks of President Barack Obama
A New Foundation
Tuesday, April 14th, 2009
Washington, DC


As Prepared for Delivery

It has now been twelve weeks since my administration began. And I think even our critics would agree that at the very least, we’ve been busy. In just under three months, we have responded to an extraordinary set of economic challenges with extraordinary action – action that has been unprecedented in both its scale and its speed.

I know that some have accused us of taking on too much at once. Others believe we haven’t done enough. And many Americans are simply wondering how all of our different programs and policies fit together in a single, overarching strategy that will move this economy from recession to recovery and ultimately to prosperity.

So today, I want to step back for a moment and explain our strategy as clearly as I can. I want to talk about what we’ve done, why we’ve done it, and what we have left to do. I want to update you on the progress we’ve made, and be honest about the pitfalls that may lie ahead.

And most of all, I want every American to know that each action we take and each policy we pursue is driven by a larger vision of America’s future – a future where sustained economic growth creates good jobs and rising incomes; a future where prosperity is fueled not by excessive debt, reckless speculation, and fleeing profit, but is instead built by skilled, productive workers; by sound investments that will spread opportunity at home and allow this nation to lead the world in the technologies, innovations, and discoveries that will shape the 21st century. That is the America I see. That is the future I know we can have.

To understand how we get there, we first need to understand how we got here.

Recessions are not uncommon. Markets and economies naturally ebb and flow, as we have seen many times in our history. But this recession is different. This recession was not caused by a normal downturn in the business cycle. It was caused by a perfect storm of irresponsibility and poor decision-making that stretched from Wall Street to Washington to Main Street.

As has been widely reported, it started in the housing market. During the course of the decade, the formula for buying a house changed: instead of saving their pennies to buy their dream house, many Americans found they could take out loans that by traditional standards their incomes just could not support. Others were tricked into signing these subprime loans by lenders who were trying to make a quick profit. And the reason these loans were so readily available was that Wall Street saw big profits to be made. Investment banks would buy and package together these questionable mortgages into securities, arguing that by pooling the mortgages, the risks had been reduced. And credit agencies that are supposed to help investors determine the soundness of various investments stamped the securities with their safest rating when they should have been labeled “Buyer Beware.”

No one really knew what the actual value of these securities were, but since the housing market was booming and prices were rising, banks and investors kept buying and selling them, always passing off the risk to someone else for a greater profit without having to take any of the responsibility. Banks took on more debt than they could handle. The government-chartered companies Fannie Mae and Freddie Mac, whose traditional mandate was to help support traditional mortgages, decided to get in on the action by buying and holding billions of dollars of these securities. AIG, the biggest insurer in the world, decided to make profits by selling billions of dollars of complicated financial instruments that supposedly insured these securities. Everybody was making record profits – except the wealth created was real only on paper. And as the bubble grew, there was almost no accountability or oversight from anyone in Washington.

Then the housing bubble burst. Home prices fell. People began defaulting on their subprime mortgages. The value of all those loans and securities plummeted. Banks and investors couldn’t find anyone to buy them. Greed gave way to fear. Investors pulled their money out of the market. Large financial institutions that didn’t have enough money on hand to pay off all their obligations collapsed. Other banks held on tight to the money they did have and simply stopped lending.

This is when the crisis spread from Wall Street to Main Street. After all, the ability to get a loan is how you finance the purchase of everything from a home to a car to a college education. It’s how stores stock their shelves, farms buy equipment, and businesses make payroll. So when banks stopped lending money, businesses started laying off workers. When laid off workers had less money to spend, businesses were forced to lay off even more workers. When people couldn’t get car loans, a bad situation at the auto companies became even worse. When people couldn’t get home loans, the crisis in the housing market only deepened. Because the infected securities were being traded worldwide and other nations also had weak regulations, this recession soon became global. And when other nations can’t afford to buy our goods, it slows our economy even further.

This is the situation we confronted on the day we took office. And so our most urgent task has been to clear away the wreckage, repair the immediate damage to the economy, and do everything we can to prevent a larger collapse. And since the problems we face are all working off each other to feed a vicious economic downturn, we’ve had no choice but to attack all fronts of our economic crisis at once.

The first step was to fight a severe shortage of demand in the economy. The Federal Reserve did this by dramatically lowering interest rates last year in order to boost investment. And my administration and Congress boosted demand by passing the largest recovery plan in our nation’s history. It’s a plan that is already in the process of saving or creating 3.5 million jobs over the next two years. It is putting money directly in people’s pockets with a tax cut for 95% of working families that is now showing up in paychecks across America. And to cushion the blow of this recession, we also provided extended unemployment benefits and continued health care coverage to Americans who have lost their jobs through no fault of their own.

Now, some have argued that this recovery plan is a case of irresponsible government spending; that it is somehow to blame for our long-term deficit projections, and that the federal government should be cutting instead of increasing spending right now. So let me tackle this argument head on.

To begin with, economists on both the left and right agree that the last thing a government should do in the middle of a recession is to cut back on spending. You see, when this recession began, many families sat around their kitchen table and tried to figure out where they could cut back. So do many businesses. That is a completely responsible and understandable reaction. But if every family in America cuts back, then no one is spending any money, which means there are more layoffs, and the economy gets even worse. That’s why the government has to step in and temporarily boost spending in order to stimulate demand. And that’s exactly what we’re doing right now.

Second of all, I absolutely agree that our long-term deficit is a major problem that we have to fix. But the fact is that this recovery plan represents only a tiny fraction of that long-term deficit. As I will discuss in a moment, the key to dealing with our deficit and debt is to get a handle on out-of-control health care costs – not to stand idly by as the economy goes into free fall.

So the recovery plan has been the first step in confronting this economic crisis. The second step has been to heal our financial system so that credit is once again flowing to the businesses and families who rely on it.

The heart of this financial crisis is that too many banks and other financial institutions simply stopped lending money. In a climate of fear, banks were unable to replace their losses by raising new capital on their own, and they were unwilling to lend the money they did have because they were afraid that no one would pay it back. It is for this reason that the last administration used the Troubled Asset Relief Program, or TARP, to provide these banks with temporary financial assistance in order to get them lending again.

Now, I don’t agree with some of the ways the TARP program was managed, but I do agree with the broader rationale that we must provide banks with the capital and the confidence necessary to start lending again. That is the purpose of the stress tests that will soon tell us how much additional capital will be needed to support lending at our largest banks. Ideally, these needs will be met by private investors. But where this is not possible, and banks require substantial additional resources from the government, we will hold accountable those responsible, force the necessary adjustments, provide the support to clean up their balance sheets, and assure the continuity of a strong, viable institution that can serve our people and our economy.

Of course, there are some who argue that the government should stand back and simply let these banks fail – especially since in many cases it was their bad decisions that helped create the crisis in the first place. But whether we like it or not, history has repeatedly shown that when nations do not take early and aggressive action to get credit flowing again, they have crises that last years and years instead of months and months – years of low growth, low job creation, and low investment that cost those nations far more than a course of bold, upfront action. And although there are a lot of Americans who understandably think that government money would be better spent going directly to families and businesses instead of banks – “where’s our bailout?,” they ask – the truth is that a dollar of capital in a bank can actually result in eight or ten dollars of loans to families and businesses, a multiplier effect that can ultimately lead to a faster pace of economic growth.

On the other hand, there have been some who don’t dispute that we need to shore up the banking system, but suggest that we have been too timid in how we go about it. They say that the federal government should have already preemptively stepped in and taken over major financial institutions the way that the FDIC currently intervenes in smaller banks, and that our failure to do so is yet another example of Washington coddling Wall Street. So let me be clear – the reason we have not taken this step has nothing to do with any ideological or political judgment we’ve made about government involvement in banks, and it’s certainly not because of any concern we have for the management and shareholders whose actions have helped cause this mess.

Rather, it is because we believe that preemptive government takeovers are likely to end up costing taxpayers even more in the end, and because it is more likely to undermine than to create confidence. Governments should practice the same principle as doctors: first do no harm. So rest assured – we will do whatever is necessary to get credit flowing again, but we will do so in ways that minimize risks to taxpayers and to the broader economy. To that end, in addition to the program to provide capital to the banks, we have launched a plan that will pair government resources with private investment in order to clear away the old loans and securities – the so-called toxic assets – that are also preventing our banks from lending money.

Now, what we’ve also learned during this crisis is that our banks aren’t the only institutions affected by these toxic assets that are clogging the financial system. A.I.G., for example, is not a bank. And yet because it chose to insure trillions of dollars worth of risky assets, its failure could threaten the entire financial system and freeze lending even further. This is why, as frustrating as it is – and I promise you, nobody is more frustrated than me – we’ve had to provide support for A.I.G. It’s also why we need new legal authority so that we have the power to intervene in such financial institutions, just like a bankruptcy court does with businesses that hit hard times, so that we can restructure these businesses in an orderly way that does not induce panic – and can restructure inappropriate bonus contracts without creating a perception that government can just change compensation rules on a whim.

This is also why we’re moving aggressively to unfreeze markets and jumpstart lending outside the banking system, where more than half of all lending in America actually takes place. To do this, we’ve started a program that will increase guarantees for small business loans and unlock the market for auto loans and student loans. And to stabilize the housing market, we’ve launched a plan that will save up to four million responsible homeowners from foreclosure and help many millions more re-finance.

In a few weeks, we will also reassess the state of Chrysler and General Motors, two companies with an important place in our history and a large footprint in our economy – but two companies that have also fallen on hard times.

Late last year, the companies were given transitional loans by the previous administration to tide them over as they worked to develop viable business plans. But the plans they developed fell short, and so we have given them some additional time to work these complex issues through. We owed that, not to the executives whose bad bets contributed to the weakening of their companies, but to the hundreds of thousands of workers whose livelihoods hang in the balance.

It is our fervent hope that in the coming weeks, Chrysler will find a viable business partner and that GM will develop a business plan that will put it on a path to profitability without endless support from the American taxpayer. In the meantime, we are taking steps to spur demand for American cars and provide relief to autoworkers and their communities. And we will continue to reaffirm this nation’s commitment to a 21st century American auto industry that creates new jobs and builds the fuel-efficient cars and trucks that will carry us toward a clean energy future.

Finally, to coordinate a global response to this global recession, I went to the meeting of the G20 nations in London the other week. Each nation has undertaken significant stimulus to spur demand. All agreed to pursue tougher regulatory reforms. We also agreed to triple the lending capacity of the International Monetary Fund, an international financial institution supported by all the major economies, and provide direct assistance to developing nations and vulnerable populations – because America’s success depends on whether other nations have the ability to buy what we sell. We pledged to avoid the trade barriers and protectionism that hurts us all in the end. And we decided to meet again in the fall to gauge our progress and take additional steps if necessary.

So all of these actions – the Recovery Act, the bank capitalization program, the housing plan, the strengthening of the non-bank credit market, the auto plan, and our work at the G20 – have been necessary pieces of the recovery puzzle. They have been designed to increase aggregate demand, get credit flowing again to families and businesses, and help them ride out the storm. And taken together, these actions are starting to generate signs of economic progress. Because of our recovery plan, schools and police departments have cancelled planned layoffs. Clean energy companies and construction companies are re-hiring workers to build everything from energy efficient windows to new roads and highways. Our housing plan has helped lead to a spike in the number of homeowners who are taking advantage of historically-low mortgage rates by refinancing, which is like putting a $2,000 tax cut in your in pocket. Our program to support the market for auto loans and student loans has started to unfreeze this market and securitize more of this lending in the last few weeks. And small businesses are seeing a jump in loan activity for the first time in months.

This is all welcome and encouraging news, but it does not mean that hard times are over. 2009 will continue to be a difficult year for America’s economy. The severity of this recession will cause more job loss, more foreclosures, and more pain before it ends. The market will continue to rise and fall. Credit is still not flowing nearly as easily as it should. The process for restructuring AIG and the auto companies will involve difficult and sometimes unpopular choices. All of this means that there is much more work to be done. And all of this means that you can continue to expect an unrelenting, unyielding, day-by-day effort from this administration to fight for economic recovery on all fronts.

But even as we continue to clear away the wreckage and address the immediate crisis, it is my firm belief that our next task is to make sure such a crisis never happens again. Even as we clean up balance sheets and get credit flowing; even as people start spending and business start hiring – we have to realize that we cannot go back to the bubble and bust economy that led us to this point.

It is simply not sustainable to have a 21st century financial system that is governed by 20th century rules and regulations that allowed the recklessness of a few to threaten the entire economy. It is not sustainable to have an economy where in one year, 40% of our corporate profits came from a financial sector that was based too much on inflated home prices, maxed out credit cards, overleveraged banks and overvalued assets; or an economy where the incomes of the top 1% have skyrocketed while the typical working household has seen their income decline by nearly $2,000.

For even as too many were chasing ever-bigger bonuses and short-term profits over the last decade, we continued to neglect the long-term threats to our prosperity: the crushing burden that the rising cost of health care is placing on families and businesses; the failure of our education system to prepare our workers for a new age; the progress that other nations are making on clean energy industries and technologies while we remain addicted to foreign oil; the growing debt that we’re passing on to our children. And even after we emerge from the current recession, these challenges will still represent major obstacles that stand in the way of our success in the 21st century.

There is a parable at the end of the Sermon on the Mount that tells the story of two men. The first built his house on a pile of sand, and it was destroyed as soon as the storm hit. But the second is known as the wise man, for when “…the rain descended, and the floods came, and the winds blew, and beat upon that house…it fell not: for it was founded upon a rock.”

We cannot rebuild this economy on the same pile of sand. We must build our house upon a rock. We must lay a new foundation for growth and prosperity – a foundation that will move us from an era of borrow and spend to one where we save and invest; where we consume less at home and send more exports abroad.

It’s a foundation built upon five pillars that will grow our economy and make this new century another American century: new rules for Wall Street that will reward drive and innovation; new investments in education that will make our workforce more skilled and competitive; new investments in renewable energy and technology that will create new jobs and industries; new investments in health care that will cut costs for families and businesses; and new savings in our federal budget that will bring down the debt for future generations. That is the new foundation we must build. That must be our future – and my Administration’s policies are designed to achieve that future.
The first step we will take to build this foundation is to reform the outdated rules and regulations that allowed this crisis to happen in the first place. It is time to lay down tough new rules of the road for Wall Street to ensure that we never find ourselves here again. Rules that punish short-cuts and abuse. Rules that tie someone’s pay to their actual job performance. Rules that protect typical American families when they buy a home, get a credit card or invest in a 401k. We have already begun to work with Congress to shape this new regulatory framework – and I expect a bill to arrive on my desk for signature before the year is out.

The second pillar of this new foundation is an education system that finally prepares our workers for a 21st century economy. In the 20th century, the GI Bill sent a generation to college, and for decades, we led the world in education and economic growth. But in this new economy, we trail the world’s leaders in graduation rates and achievement. That is why we have set a goal that will greatly enhance our ability to compete for the high-wage, high-tech jobs of the 21st century: by 2020, America will once more have the highest proportion of college graduates in the world.

To meet that goal, we have already dramatically expanded early childhood education. We are investing in innovative programs that have proven to help schools meet high standards and close achievement gaps. We are creating new rewards tied to teacher performance and new pathways for advancement. I have asked every American to commit to at least one year or more of higher education or career training, and we have provided tax credits to make a college education more affordable for every American.

The third pillar of this new foundation is to harness the renewable energy that can create millions of new jobs and new industries. We all know that the country that harnesses this energy will lead the 21st century. Yet we have allowed other countries to outpace us on this race to the future.

Well, I do not accept a future where the jobs and industries of tomorrow take root beyond our borders. It is time for America to lead again.

The investments we made in the Recovery Act will double this nation’s supply of renewable energy in the next three years. And we are putting Americans to work making our homes and buildings more efficient so that we can save billions on our energy bills and grow our economy at the same time.

But the only way to truly spark this transformation is through a gradual, market-based cap on carbon pollution, so that clean energy is the profitable kind of energy. Some have argued that we shouldn’t attempt such a transition until the economy recovers, and they are right that we have to take the costs of transition into account. But we can no longer delay putting a framework for a clean energy economy in place. If businesses and entrepreneurs know today that we are closing this carbon pollution loophole, they will start investing in clean energy now. And pretty soon, we’ll see more companies constructing solar panels, and workers building wind turbines, and car companies manufacturing fuel-efficient cars. Investors will put some money into a new energy technology, and a small business will open to start selling it. That’s how we can grow this economy, enhance our security, and protect our planet at the same time.

The fourth pillar of the new foundation is a 21st century health care system where families, businesses, and government budgets aren’t dragged down by skyrocketing insurance premiums.

One and a half million Americans could lose their homes this year just because of a medical crisis. Major American corporations are struggling to compete with their foreign counterparts, and small businesses are closing their doors. We cannot allow the cost of health care to strangle our economy any longer.

That’s why our Recovery Act will invest in electronic health records with strict privacy standards that will save money and lives. We’ve also made the largest investment ever in preventive care, because that is one of the best ways to keep costs under control. And included in the budgets that just passed Congress is an historic commitment to reform that will finally make quality health care affordable for every American. So I look forward to working with both parties in Congress to make this reform a reality in the coming months.

Fixing our health care system will certainly require resources, but in my budget, we’ve made a commitment to fully pay for reform without increasing the deficit, and we’ve identified specific savings that will make the health care system more efficient and reduce costs for us all.

In fact, we have undertaken an unprecedented effort to find this kind of savings in every corner of the budget, because the final pillar in building our new foundation is restoring fiscal discipline once this economy recovers. Already, we have identified two trillion dollars in deficit-reductions over the next decade. We have announced procurement reform that will greatly reduce no-bid contracts and save the government $40 billion. Secretary Gates recently announced a courageous set of reforms that go right at the hundreds of billions of dollars in waste and cost overruns that have bloated our defense budget without making America safer. We will end education programs that don’t work, and root out waste, fraud, and abuse in our Medicare program.

Altogether, this budget will reduce discretionary spending for domestic programs as share of the economy by more than 10% over the next decade to the lowest level since we began keeping records nearly half a century ago. And as we continue to go through the federal budget line by line, we will be announcing additional savings, secured by eliminating and consolidating programs we don’t need so that we can make room for the things we do need.

Now, I realize that for some, this isn’t enough. I know there is a criticism out there that my administration has somehow been spending with reckless abandon, pushing a liberal social agenda while mortgaging our children’s future.

Well let me make three points.

First, as I said earlier, the worst thing that we could do in a recession this severe is to try to cut government spending at the same time as families and businesses around the world are cutting back on their spending. So as serious as our deficit and debt problems are – and they are very serious – major efforts to deal with them have to focus on the medium and long-term budget picture.

Second, in tackling the deficit issue, we simply cannot sacrifice the long-term investments that we so desperately need to generate long-term prosperity. Just as a cash-strapped family may cut back on luxuries but will insist on spending money to get their children through college, so we as a country have to make current choices with an eye on the future. If we don’t invest now in renewable energy or a skilled workforce or a more affordable health care system, this economy simply won’t grow at the pace it needs to in two or five or ten years down the road. If we don’t lay this new foundation, it won’t be long before we are right back where we are today. And I can assure you that chronically slow growth will not help our long-term budget situation.

Third, the problem with our deficit and debt is not new. It has been building dramatically over the past eight years, largely because big tax cuts combined with increased spending on two wars and the increased costs of government health care programs. This structural gap in our budget, between the amount of money coming in and the amount going out, will only get worse as Baby Boomers age, and will in fact lead us down an unsustainable path. But let’s not kid ourselves and suggest that we can do it by trimming a few earmarks or cutting the budget for the National Endowment for the Arts. Along with defense and interest on the national debt, the biggest costs in our budget are entitlement programs like Medicare, Medicaid, and Social Security that get more and more expensive every year. So if we want to get serious about fiscal discipline – and I do – then we are going to not only have to trim waste out of our discretionary budget, a process we have already begun – but we will also have to get serious about entitlement reform.

Nothing will be more important to this goal than passing health care reform that brings down costs across the system, including in Medicare and Medicaid. Make no mistake: health care reform is entitlement reform. That’s not just my opinion – that was the conclusion of a wide range of participants at the Fiscal Responsibility Summit we held at the White House in February, and that’s one of the reasons why I firmly believe we need to get health care reform done this year.

Once we tackle rising health care costs, we must also work to put Social Security on firmer footing. It is time for both parties to come together and find a way to keep the promise of a sound retirement for future generations. And we should restore a sense of fairness and balance to our tax code by shutting down corporate loopholes and ensuring that everyone pays what they owe.

All of these efforts will require tough choices and compromises. But the difficulties can’t serve as an excuse for inaction. Not anymore.

This brings up one final point I’d like to make today. I’ve talked a lot about the fundamental weakness in our economy that led us to this day of reckoning. But we also arrived here because of a fundamental weakness in our political system.

For too long, too many in Washington put off hard decisions for some other time on some other day. There’s been a tendency to score political points instead of rolling up sleeves to solve real problems. There is also an impatience that characterizes this town – an attention span that has only grown shorter with the twenty-four hour news cycle, and insists on instant gratification in the form of immediate results or higher poll numbers. When a crisis hits, there’s all too often a lurch from shock to trance, with everyone responding to the tempest of the moment until the furor has died away and the media coverage has moved on, instead of confronting the major challenges that will shape our future in a sustained and focused way.

This can’t be one of those times. The challenges are too great. The stakes are too high. I know how difficult it is for Members of Congress in both parties to grapple with some of the big decisions we face right now. It’s more than most congresses and most presidents have to deal with in a lifetime.

But we have been called to govern in extraordinary times. And that requires an extraordinary sense of responsibility – to ourselves, to the men and women who sent us here, and to the many generations whose lives will be affected for good or for ill because of what we do here.

There is no doubt that times are still tough. By no means are we out of the woods just yet. But from where we stand, for the very first time, we are beginning to see glimmers of hope. And beyond that, way off in the distance, we can see a vision of an America’s future that is far different than our troubled economic past. It’s an America teeming with new industry and commerce; humming with new energy and discoveries that light the world once more. A place where anyone from anywhere with a good idea or the will to work can live the dream they’ve heard so much about.

It is that house upon the rock. Proud, sturdy, and unwavering in the face of the greatest storm. We will not finish it in one year or even many, but if we use this moment to lay that new foundation; if we come together and begin the hard work of rebuilding; if we persist and persevere against the disappointments and setbacks that will surely lie ahead, then I have no doubt that this house will stand and the dream of our founders will live on in our time. Thank you, God Bless you, and may God Bless the United States of America.

##

State Begins Paying Healthcare Providers More Quickly

From the Office of Governor Pat Quinn

CHICAGO – Governor Pat Quinn announced that starting today, nursing homes and hospitals long waiting for payments from the State of Illinois will begin to receive money thanks to funding from the American Recovery and Reinvestment Act (ARRA). With dollars from the ARRA, Illinois will reduce the payment cycle for hospitals and nursing homes to less than 30 days by June 1, 2009.

“The State of Illinois is committed to paying its bills,” said Governor Pat Quinn. “Medical providers are struggling in this economy, and they are counting on the state to pay its bills on time so that they can keep their doors open for people in need of care. This is a promising first step toward reducing the payment cycle and to meeting our commitment to paying providers in 30 days or less.”

Today, the Illinois Department of Healthcare and Family Services (HFS) will draw over $200 million of additional federal reimbursement for bills paid back to October 1, 2008, allowing the state to pay many past due nursing home and hospital bills. For example, before today, nursing homes were waiting up to 150 days to receive payment.

Under the ARRA, the federal reimbursement rate for Medicaid increased from approximately 50 percent to about 60 percent.

For more information about the increased federal matching rate included in the American Recovery and Reinvestment Act, please visit the Recovery Illinois Web site at www.Recovery.Illinois.gov.

Gov. Quinn Announces Recovery Funding for Food Stamps & Food Banks

From the Office of Governor Pat Quinn

Springfield – March 31, 2009. Governor Pat Quinn today announced that Illinois will receive $890 million in federal recovery dollars to increase food stamp benefits for over 600,000 families. In addition, Illinois also expects to receive $11.5 million for the Emergency Food Assistance Program from the American Recovery and Reinvestment Act. Illinois has already ordered 3.5 million pounds of food for food banks.

“During the national recession, Illinois families are struggling to put food on the table,” said Governor Quinn. “Increased food benefits and additional funding for food banks will help parents keep their families fed and will help grow our Illinois economy.”

Starting April 1, 2009, Illinois citizens enrolled in the Supplemental Nutrition Assistance Program (SNAP) will see an increase in their monthly benefits of up to 13.6 percent for five years.

Anyone who would like to apply for the SNAP Program can file an application on-line at or at their local DHS Family Community Resource Center.

The Emergency Food Assistance Program provides federal funds to food banks across Illinois to distribute USDA commodities and privately donated food to over 750 pantries, homeless shelters, and soup kitchens throughout the state. IDHS partners with eight food banks in Illinois to operate the program.

In addition to the $11.5 million for food banks from the federal recovery program, the Governor announced that his Fiscal Year 2010 budget dedicates $1 million for food banks to help serve struggling families in these poor economic times.

Durbin Announces $99 Million in Recovery Act Funding for Argonne National Lab

From the Office of U.S. Senator Dick Durbin

[WASHINGTON, D.C.] – Assistant Senate Majority Leader Dick Durbin (D-IL) today announced on a conference call with the Director of Argonne National Laboratory, Eric Isaacs that the lab will receive $99 million in funding through the American Recovery and Reinvestment Act to accelerate environmental cleanup work and create jobs. The Director of Fermilab, Pier Oddone, was also on today’s call.

“Last week, Congressman Foster and I announced forty-eight million dollars in Recovery Act funding for Argonne and Fermilab,” said Durbin. “Today, the directors of both labs and I discussed more great news for Illinois. Ninety-nine million dollars will be used by Argonne to create jobs at the lab and reduce environmental risks associated with nuclear waste – two main goals of the Recovery Act.”

On March 23, Durbin and Congressman Bill Foster (D-IL) announced that the Department of Energy (DOE)’s Office of Science has awarded a total of $48 million in funding to Fermilab and Argonne National Laboratory to protect jobs and support critical research. The funding from the American Recovery and Reinvestment Act was part of the $1.2 billion in funding announced by the Office of Science last week.

Today’s funding is part of a Department of Energy (DOE) announcement of $6 billion in new funding under the Recovery Act to accelerate environmental cleanup work and create thousands of jobs across 12 states. Projects identified for funding are focused on accelerating cleanup of soil and groundwater, transportation and disposal of waste and cleaning and demolishing former weapons complex facilities. These projects and the new funding are managed by the DOE’s Office of Environmental Management, which is responsible for the risk reduction and cleanup of the environmental legacy from the nation’s nuclear weapons program.