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Snowe Votes to Support Bipartisan Compromise on Economic Stimulus

February 9, 2009

U.S. Senator Olympia J. Snowe (R-Maine) released the following statement as the Senate was set vote to end debate on an $827 billion economic stimulus package. Final Senate passage of the bill is scheduled to take place Tuesday afternoon. A senior member of the Finance Committee, Senator Snowe worked closely with Committee Chairman Max Baucus and Senate leadership to craft more than 65 percent of the stimulus compromise – some $539 billion in critical tax incentives, Medicaid funding, and unemployment insurance. While supportive of the compromise voted on tonight, Senator Snowe stressed to both Vice President Biden and Majority Leader Reid, during conversations Monday morning, that her vote on final passage will be determined by the details of the conference report on the stimulus bill expected to be completed this week.  Both the Vice President and the Majority Leader told Senator Snowe she would be directly involved in Senate-House conference committee process.

"Unemployment is at a 16-year high and hard-working families and businesses continue to struggle to make ends meet during one of the worst economic downturns in our nation’s history. This legislation represents a compromise created through consensus building between Republicans and Democrats.  While I support the compromise in its current form, I will actively be involved in the conference committee process to ensure the final package provides the stimulative boost our economy needs – job creation and assistance to those individuals and businesses struggling most during these trying economic times."

Of the $827 billion compromise, roughly 35 percent or $289 billion consists of discretionary spending. The remaining 65 percent, or $539 billion, which was crafted by Senator Snowe and the Finance Committee, covers: small business expensing to provide firms more rapid write-offs for making job-creating investments; the tax-free treatment of unemployment insurance benefits to help displaced workers, additional funding to expand the New Markets Tax Credit which has a proven track record of boosting economic development and creating jobs in rural areas in Maine and throughout the rest of the country. Additionally, the Finance portion of the stimulus bill also includes $87 billion for Federal Medical Assistance Percentages (FMAP) so that states can better meet the essential health care needs of Medicaid recipients during challenging economic times. As a result of this provision, which was added by Senator Snowe, the state of Maine is estimated to receive up to $420 million in additional federal Medicaid assistance.