Congressman Rick Larsen's Online Office

Washington, D.C. — U.S. Representative Rick Larsen (WA-02) today called for Congress to pass additional measures to create jobs, help Americans hurt most by the recession, and further strengthen our country’s foundation for future economic growth.

“The economic recovery package that Congress passed in February is working and will continue to work.  Because of this recovery package we are working our way out of a recession,” said Larsen. 

“But Congress must continue to do everything possible to create jobs, help those hurt the most and strengthen the foundation for our economic growth.  We must not rest until everyone who lost their job is back to work.”

Larsen cited leading economists and the White House Council of Economic Advisors that have credited the recovery package with easing the severity of the recession.  The recovery package has added 2.3 percentage points to economic growth in the second quarter of 2009 and 3 percentage points to the third quarter.

Larsen also noted the recovery package will invest an additional $549 billion into American communities.

“Economic recovery dollars are going to work in our communities to create jobs, strengthen our infrastructure, and get our economy moving again,” said Larsen, who last week toured a transportation project in Marysville that was funded by recovery dollars: the eleventh stimulus project he has visited.  

The Washington State Department of Transportation estimates that by the end of August, the recovery package had created or sustained 8,245 jobs building and repairing highways, infrastructure, and public transportation in Washington state.  Nationwide, the Council of Economic Advisors estimates that the recovery package has added between 600,000 and 1.1 million jobs so far.  Jobs will continue to be created as the second half of the recovery package is spent out.

“While the recovery package is helping stem the tide of job loss, we must do more to put Americans back to work,” said Larsen.  “Today, I call on my colleagues in Congress to extend the first-time homebuyer tax credit to help strengthen our economic foundation and create jobs in Washington state and around the country.”

Larsen took action and joined over 150 representatives in sending a bipartisan letter calling on House leadership to extend the homebuyer tax credit before it expires.  Unless Congress acts, the first-time homebuyer tax credit will expire on November 30, 2009.  According to the Washington Association of REALTORS, extending the tax credit for an additional six months could create over 4,000 jobs in Washington state. 

Larsen also expressed the need to extend certain recovery programs.  He urged his colleagues to take three specific actions to help families hurt most by the recession: extend unemployment benefits for an additional 6 months, continue increased food stamp benefits to help families put food on their table, and extend health benefits under COBRA for an additional 6 months. 

Finally, Larsen called on the administration to do more to make credit available to small businesses. 

“After holding small business workshops across the 2nd District earlier this year, it was clear access to credit is still tight and small businesses are feeling the credit crunch,” said Larsen.

Larsen voiced his concerns to the House Subcommittee on Finance and Tax about small businesses ability to access capital.  Specifically, he urged the subcommittee to support the Small Business Credit Expansion and Loan Markets Stabilization Act of 2009 (H.R. 3723).  The bill would increase the maximum gross size of 7(a) loans for $2 millions to $3 million and focus the loan program on startup and early stage firms; end improper denials and long waiting periods when lenders apply for the SBA to honor its guarantees by requiring prompt and proper payment of guarantee repurchase applications; and extend the ARC loan program for another year and increase the maximum size of the loan from $35,000 to $50,000.

“Moving forward, we must build a foundation for future economic growth by putting in place appropriate regulations for our financial markets so that we never face an economic crisis like this one again,” Larsen concluded. “It is also imperative that we restore fiscal discipline to Washington and begin to wind down the financial rescue package to pay back American taxpayers.”


Larsen’s Proposal to Create Jobs and Help Americans Hit Hard by the Recession

Create Jobs in our Local Communities:

Continue the American Recovery and Reinvestment Act (ARRA) investment in our local communities to create jobs

• Over $238 billion in recovery dollars (40 percent) have been spent out.
• $549 billion (60 percent) will be spent out over the next two years and will continue to create jobs in our local communities (source: recovery.gov).
  

Extend the first-time homebuyer tax credit through June 2010 to create over 4,000 jobs in Washington state

• Larsen joined over 150 of his colleagues in sending a bipartisan letter calling on House leadership to extend the homebuyer tax credit before it expires.
• According to the Washington Association of REALTORS, extending the tax credit for an additional six months could create over 4,000 jobs in Washington state.

Help Americans Hit Hard By the Recession:

Extend unemployment benefits to families who are still unemployed due to the recession

• Rep. Larsen voted to provide up to 13 weeks of extended unemployment benefits in high unemployment states like Washington (HR 3548).
  

Extend increased food stamp benefits and COBRA health benefits through July 2010 to families in need

• ARRA increased food stamp benefits by 20 percent and paid for 65 percent of COBRA health insurance coverage for unemployed workers.
• Unless Congress acts, these benefits will expire at the end of the year.

Build a Foundation for Future Economic Growth:

Increase access to credit for small businesses 

• Rep. Larsen submitted testimony to the House Subcommittee on Finance and Tax supporting a bill (HR 3723) that would improve the America’s Recovery Capital (ARC) loan program that was initially authorized by ARRA after hearing from small businesses in the 2nd District about their difficulties accessing capital. 
• According to the Small Business Development Center, in Skagit County at least 25 ARC loans have been submitted and not accepted by local banks. 
• By extending the program for another year, simplifying the application to only one page, and increasing the maximum size of the loan from $35,000 to $50,000, this bill would greatly increase the chances of a small business being able to secure an ARC loan.
  

Spur lending and loan modification in the troubled commercial real estate market 

• Rep. Larsen supports measures the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) are taking to encourage lending and help banks modify loans.
• Nearly $500 billion in commercial real estate loans are expected to come due annually over the next few years, and they must be refinanced or modified in order to avoid default.
  

Pass the surface transportation authorization bill to create or sustain six million jobs 

• Rep. Larsen, a member of the Transportation and Infrastructure Committee, is helping to draft the surface transportation authorization bill.
• The bill will invest in our nation’s highways, bridges, transit, and high-speed rail to create or sustain six million jobs over the next six years. 
  

Next Steps:

Pass financial regulatory reform legislation to put in place appropriate regulations for our financial markets so that we reduce the likelihood of facing another economic crisis 

• Rep. Larsen supports legislation being developed by the House Financial Services Committee to impose strong oversight of financial firms and the financial markets, protect consumers from financial abuse and give the government the tools it needs to manage financial crises in the future. 
  

Wind down the financial rescue (TARP) programs that are no longer needed to stabilize our economy

• Rep. Larsen supports the Administration’s actions to close the guarantee program for money market funds and several Public-Private Investment Funds, and their recent announcement that the Capital Purchase Program, the Capital Assistance Program, and the Targeted Investment Program will be shut down by the end of the year. 
  

Restore fiscal discipline to Washington D.C.

• In July, Rep. Larsen voted for a fiscal responsibility bill (HR 2920) that requires Congress to offset spending with savings elsewhere in the budget.
• Rep. Larsen has cosponsored legislation (HR 1557) to create a long-term spending reform commission tasked with reviewing the unsustainable imbalance between long-term federal spending commitments and projected revenues particularly in regard to Social Security, Medicare and Medicaid. 
• As a member of the Armed Services Committee, Rep. Larsen voted for a bill (HR 2101) to restore much needed fiscal responsibility and accountability in the defense procurement process that could save taxpayers tens of billions of dollars down the road.
• Rep. Larsen voted for President Obama’s Budget, which will cut the deficit by nearly two-thirds by 2013. 
  

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