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USDA Highlights Impact of Recovery Act on Rural America

 

WASHINGTON, Feb. 17 – Today, the U.S. Department of Agriculture highlighted the successes of the American Recovery and Reinvestment Act (ARRA). One year after the passage of ARRA, evidence is clear – and growing by the day – that the Recovery Act is working to cushion the greatest economic crisis since the Great Depression and lay a new foundation for economic growth.

"President Obama’s Recovery Act has helped to create jobs and lay a new foundation for economic growth during the greatest economic crisis since the Great Depression,” said Agriculture Secretary Tom Vilsack.  “USDA has used Recovery Act funding create badly-needed jobs and stimulate local economies, help farmers and rural businesses make it through tough times, ensure that struggling families can put food on the table, and build and revitalize critical infrastructure in rural communities across America.”

The National Forests in Mississippi is in the process of replacing 21 road bridges across the state’s six national forests using $4,800,000 provided through the American Recovery and Reinvestment Act (ARRA).

While forest visitors and staff are national forest roads’ primary users, many roads are vital links in local transportation systems for emergency vehicles, school buses and mail trucks, and local residents who are frequent travelers.

Mississippi engineering firms are designing the bridges, and Mississippi contractors will install them.  In addition, Mississippi companies are making the concrete bridge components.

 “This contract employs two bridge crews and pays their salaries for one year,” said president Hunter Fordice of Fordice Construction, located in Vicksburg. “Taxpayers also get new bridges out of the deal. To me this is real economic stimulus because it supports jobs and provides safer transportation for the public.

“Fordice Construction Company buys materials from vendors and suppliers, so money is being turned over time and time again,” said Fordice. “The money spent to build these bridges changes hand from the government to contractors to sub-contractors and to vendors.”

Forest supervisor Gretta Boley said, “The ripple effect created by the expenditure of these funds is providing a much needed boost to the state’s construction sector during this difficult economic period.  This was exactly the intent of President Obama’s stimulus package legislation.”

The bridges are being replaced using a Mississippi Department of Transportation Office of State Aid Road Construction system that utilizes precast concrete bridge components made off-site and transported to the construction sites for installation.  The results are very strong, reliable bridges with expected lifespans of 50-to-70 years that can be installed in a short period of time, minimizing traffic impacts.

The bridges can also be built for a relatively low cost compared to similar bridges.

The replacement of these bridges will help ensure the continued viability of the forests’ transportation systems for years to come.

Since the Recovery Act was signed into law a year ago, USDA has moved quickly to get dollars out the door.  Aside from funding for the Supplemental Nutrition Assistance Program, which is allocated on a mandatory basis each month, USDA has announced the vast majority of its remaining $7.9 billion to support more than 90,000 grants, loans, and other job-creating projects. In the first year implementing the Recovery Act, USDA has: 

n  Provided over $100 billion in tax relief for American businesses and families, including tax cuts for 95 percent of working families through the Making Work Pay tax Credit.  And tax relief is expected to nearly double in the coming months.

n  Helped over 38 million Americans who need food assistance by providing an average increase in benefits of $80 per month to low-income households of four.  This funding is a fast-acting economic stimulus as every $1 in food benefits generates up to $1.84 in total economic activity, supporting jobs at all levels of the food chain. 

n  Helped 85,420 rural Americans purchase or repair their homes with affordable loans while simultaneously stimulating the economy, and creating jobs in the construction and real estate sectors. 

n  Helped create private sector jobs protecting rural communities from large wildfires, while improving the health of our forests, water and air resources.  We provided $500 million to treat over 134,000 acres of forest to reduce the risk of wildfire.

n  Provided 2,636 loans to farmers and ranchers help them purchase the farm equipment, feed, seed, and fuel they needed to keep their farms operating and support jobs in the rural economy.  Approximately half of these loans went to beginning farmers and 25 percent to socially disadvantaged farmers.

n  Created green jobs at plants that use of wood from forest restoration activities to generate renewable energy.  Grants worth $50 million went to projects that will power 223,000 homes.

n  Helped more than 5,000 schools purchase equipment to improve the safe and healthy meals they serve to children. 

In the coming months, USDA will be implementing additional programs and projects as weather begins to thaw, and construction projects are expected to break ground across the country.  In 2010, USDA will continue to invest in projects to help get Americans and the economy back to work:

By bringing broadband internet to an estimated 1.2 million households, 230,000 businesses, and 7,800 anchor institutions like hospitals and schools across rural America, in one largest job generating efforts to date.  This $3.4 billion investment will give businesses access to global markets and spur rural economic development. 

By helping 300 rural businesses grow, innovate and create jobs, providing $900 million on top of $570 million already at work helping 160 businesses across the country.

With the construction and improvement of hundreds of community facilities, such as police and fire stations, and libraries in rural America.  We will improve access to health care for three million rural residents, and educational services for 2.5 million residents. We will provide nearly $750 million on top of $470 million already announced for more than 850 projects. 

By constructing and rebuilding water and waste water systems in more than 200 communities affecting one million rural Americans.  We will provide nearly $1 billion on top of more than $2 billion already announced for projects in 530 communities. 

More information about USDA's Recovery Act efforts is available at www.usda.gov/recovery.  Log on to USDA’s YouTube channel to view additional ARRA project highlights, videos are available at www.youtube.com/usda#g/c/2A468F5AC6EBCED.7