14. May 2009 by admin.

THE WHITE HOUSE

Office of the Press Secretary
_____________________________________________________
For Immediate Release                           May 13, 2009

TEXT OF A LETTER FROM THE PRESIDENT
TO THE SPEAKER OF THE HOUSE OF REPRESENTATIVES

May 12, 2009

Dear Madam Speaker:

Last month, I asked the Congress to consider changes to the level of borrowing authority for the International Monetary Fund (IMF). Today, I formally transmit this request in the accompanying supplemental budget request. I urge that the Congress expand the resources available to the IMF through its New Arrangements to Borrow (NAB) and approve a set of other proposals to strengthen the IMF, including an increase of about $8 billion in the U.S. quota subscription to the IMF.

The NAB is one mechanism that the IMF utilizes to boost its lending ability when its regular resources are at their limit in the face of circumstances that threaten the stability of the international monetary system. This increase in the NAB by the United States and other countries would provide the necessary resources for the IMF to address financial dangers in markets around the world, especially those in developing countries impacted by the global financial crisis.

To that end, I request that the Congress approve both the U.S. expansion of NAB up to $100 billion and the increase in the U.S. quota subscription. The size of the NAB is currently $50 billion. This change, and the U.S. quota increase, should carry a minimal budget score as it is equivalent in some respects to credit activity with very small risk. The request provides that the costs of these proposed NAB and quota increases will be reflected on a net present value basis.

This step is crucial for U.S. economic interests. Many of the developing countries that would benefit from the NAB expansion are experiencing severe economic decline and a massive withdrawal of capital. Should the situation become worse, and should the IMF not be in a position to stem the crisis, currencies could collapse. The experience with the Asian financial crisis shows that such a massive failure would be a catalyst for steeper drops in U.S. growth, jobs, and exports.

This proposal, first discussed at the international level at the recent G-20 meetings in London, came after broad consultation with Congress. The U.S. expansion of $100 billion in the NAB would be part of an overall international expansion of $500 billion. We committed to this expansion, and other countries are looking to the United States to deliver on our commitment.

Sincerely,
BARACK OBAMA

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14. May 2009 by admin.

THE WHITE HOUSE

Office of the Vice President
____________________________________________________
FOR IMMEDIATE RELEASE                     May 13, 2009

Vice President Biden Delivers First Quarterly Report to the President on Recovery Act Progress

The Vice President today submitted his first quarterly report to the President detailing progress implementing the American Recovery and Reinvestment Act (ARRA).  The report shows early progress providing immediate financial relief for American families and jump-starting billions of dollars in job-creating projects in the first quarter, with both the pace of spending and job creation expected to accelerate significantly in the coming months.

In the first 77 days* of the two-year Recovery Act program:

•         150,000 jobs have been created or saved
•          More than $88 billion dollars has been made available for programs and projects
•          Over 3,000 transportation construction projects have been funded in 52 states and    territories
•         Ninety-five percent of working families have begun seeing the benefits of the Making Work Pay tax credit in their paychecks
•          COBRA health insurance premiums have been reduced by 65 percent
•         Unemployment benefits have increased by $25 a week
•          States have drawn down $15.7 billion in Medical Assistance (FMAP) funds, allowing them to avoid budget cuts
•          Thirteen states have qualified for State Fiscal Stabilization Funds to improve education programs and save education-related jobs

Looking ahead, an additional 600,000 jobs are expected to be created or saved under the Recovery Act in the next 100 days and billions of dollars in contracts and grants are expected to be awarded in the coming months.  The report finds that the anticipated funds are already having an effect on economic and job growth as private sector companies staff up to meet expected demand for their products under Recovery Act programs and state and local governments adjust their spending plans ahead of receiving additional Recovery Act funds.

The report also includes stories from the field that offer a snapshot of what people living in local communities are thinking and saying about the Recovery Act in their own words.  This is the first of a series of updates the Vice President will provide to the President as Recovery Act funds are put to work.

To view the report, click HERE.

Data is as of May 5, 2009.

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14. May 2009 by admin.

THE WHITE HOUSE

Office of the Vice President

__________________________________________________________________
FOR IMMEDIATE RELEASE                          May 13, 2009

OMB Announces New Recovery Act Administrative Costs Guidance for States

Updated Guidance Helps States Better Meet Accountability and Transparency Requirements in Recovery Act

The Office of Management and Budget has issued updated administrative costs guidance for states, improving the process by which they may obtain funds needed to meet the accountability and transparency requirements in the Recovery Act.

Memorandum M-09-18 (May 11, 2009) allows states to submit to the Federal Department of Health and Human Services either:

•          estimated or budgeted costs for ARRA administrative costs to be included in its indirect cost rates for ARRA programs or

•          a methodology to develop a billing rate for ARRA administrative costs used to charge the ARRA programs directly.

The memo addresses concerns raised by state recipients of American Recovery and Reinvestment Act (ARRA) grants regarding being able to secure funds for administrative costs like maintenance of their Recovery.gov websites or development of their reporting databases in a timely manner.  When the concern was raised, Vice President Biden asked OMB and Recovery Act staff to improve the funding process and the updated guidance was generated with the input of state and local officials.  States will now be able to obtain funds for administrative costs related to Recovery Act activities more quickly than would be permitted under the current traditional process, allowing them to make up-front investments in staff and technology.
To view the memo, click HERE.

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