January 29, 2009
House Stimulus Legislation Would Bolster Social-Services Spending
By Suzanne Perry
The economic-stimulus package approved last night by the House of Representatives would provide new money to an array of health and social-services programs, offering some relief to charities that are facing rising demand and shrinking revenues as the economic crisis deepens.
The American Recovery and Reinvestment Act of 2009 would introduce about $819-billion in spending and tax cuts designed to create from 3 million to 4 million jobs. The package would provide money for clean energy, public schools, health technology, and road and bridge projects.
But it would also spend $87-billion to increase the federal share of Medicaid, the health program for poor people, through the end of 2010, which could head off some state budget cuts that would affect nonprofit medical centers.
It also proposes $2.1-billion for Head Start and Early Head Start, the early-education programs; $1.5-billion to help community health centers renovate their clinics and provide care to more uninsured patients; $200-million for the Emergency Food and Shelter Program, which is governed by a board of social-services charities; and $100-million for the Compassion Capital Fund, which provides grants to religious and other charities to provide social services.
In an effort to help states that are facing massive shortfalls as tax revenues plummet, the bill also seeks $2-billion for Child Care and Development Block Grants, to offer child-care services to low-income families; $1-billion for Community Service Block Grants, to provide social services to low-income people; and $1-billion for Community Development Block Grants, to pay for housing and antipoverty projects. Charities get many of the contracts to operate those programs.
It would also offer $200-million to AmeriCorps, the national-service program, and $50-million to the National Endowment for the Arts to provide grants to struggling arts groups.
The debate now moves to the Senate, which is considering a slightly different version of the bill.

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will private business
feel the need to give to charities in the
future once this massive amount of federal money is dolled out???
— J McDonald Jan 29, 03:50 PM #
Where’s the economic stimulus? Pork and social service programs won’t stimulate the economy. Where’s the “CHANGE” that President Obama promised? It appears to be business as usual. This presidency may prove to be an even bigger scam than the one pulled off by Bernard Madoff.
— Kevin Feldman Jan 29, 03:50 PM #
This is the most encouraging news I’ve read in a long time. This IS the Change that has been needed and promised. “A rising tide lifts all the boats”-JFK. Obama’s plan will stop the downward spiral and help change the trajectory so that all the people of this country may begin to function at their maximum potential. With a healthier, more stable population, the sky is the limit! And, we will be in a better position to provide leadership and assistance to the rest of the world. A new day has dawned, indeed. Thank you, President Obama. Thank you, America, for electing him.
— Susan Goryl Reeves Jan 30, 10:12 AM #
Well, at least we’re bailing out people and organizations that help people—not billionaires and global corporations.
— A.Y. Jan 30, 11:22 AM #
We’re in big trouble. I suspect the np industry will be half the size on the other side.
— Mike Feb 2, 09:59 AM #
Mike what do you mean by “the np industry”?
— Anon Feb 3, 10:39 AM #
It is certain that Obama’s administration will be good for social service agencies; I hope that he is not impeded by the enemies of progressive. His administration will open new trajectories for social services. Thank you, President Obama.
-Joseph
— Joseph Nwoye Feb 4, 04:41 PM #
Where is USAID in all this? What about aid to developing countries?
— dede yebovi Feb 18, 05:13 AM #