From the Desk of Don Gehring                               Date: February 13, 2009

Federal Update

American Recovery and Reinvestment Act of 2009 – The conference committee of the House of Representatives and the Senate agreed upon a $789 billion package.  The House and Senate are expected to pass the compromise bill today, February 13th.  The President is likely to sign the bill on Monday, February 16th (President’s Day). 

Health System

• Temporary Federal Medical Assistance Percentage (FMAP) increase ($86.7 billion)

• Funding distributed for a 27-month period through 2010

• Across-the-board increase to states of 6.2%

• Bonus (in addition to across-the-board increase) in the form of a decrease in the state share, based on state's increase in the unemployment rate

• States must maintain current levels of eligibility

• Increase in Disproportionate Share Hospital allotments

• Increases states' FY 09 annual DSH allotments by 2.5%

• Increases states' FY 10 by 2.5% above FY 09 DSH allotment

• After FY 10, states' annual DSH allotments would return to 100% of the annual DSH allotments as determined under current law

• Moratorium on CMS Regulations

• Includes "Sense of Congress" that HHS Secretary should not promulgate regulations concerning:

                        - Cost Limit Rule
                        - Graduate Medical Education Rule

• Blocks FY 09 Medicare payment reduction to teaching hospitals related to capital payments for indirect medical education

• Health Information Technology  ($19 billion)

• Proposal allows banks to deduct 80% of the cost of buying and carrying tax-exempt bonds issued in 2009 and 2010, up to $30 million per borrower

 
Higher Education
 

• $39.5 billion would be appropriated to the states explicitly for elementary, secondary, and public higher education to restore cuts to state budgets

• Can be used by the states in FY2009, FY2010, and FY2011 rather than just in FY2009 and FY2010

• The states must use the federal resources to bring public higher education back to the higher of either the FY2008 or FY2009 funding levels

• A $500 increase in the Pell maximum

• A new $2,500 education tax credit, 40 percent of which would be refundable

• $200 million for the work-study program

• $100 million for teacher enhancement grants

Science and Research

• $3 billion for National Science Foundation (NSF)

• $10.4 billion for National Institutes of Health (NIH)

• $2.0 billion for research at the Department of Energy (DOE), including $1.6 billion for Science and $400 million for Advanced Research Project Agency-Energy (ARPA-E)

• $580 million for the National Institute of Standards and Technology (NIST), including $180 million for a competitive research facilities construction program

• $280 million for National Oceanic and Atmospheric Administration (NOAA) research

• $400 million and $150 million, respectively, for NASA science and aeronautics programs

Even if the bill is signed on Monday, the process is still very fluid.  It is not known exactly when the money will be allocated or what steps VCU will need to take to secure any of this money.

If you have questions, contact Don Gehring (dcgehrin@vcu.edu) or Mark Smith (mesmith@vcu.edu). Our office phone number is: 804-828-1235.