After a whirlwind process, Congress has approved and the president is expected to sign a $789 billion economic recovery bill. Although difficult to grasp just how large the package is, the good news for Vanderbilt and other research institutions is that it contains significant funding for both student aid and research endeavors.

Chancellor Nicholas S. Zeppos seized the opportunity to visit with many members of the Tennessee delegation in meetings on Capitol Hill just prior to final consideration of the bill to press the case for the inclusion of this funding in the package. In meetings with Sens. Lamar Alexander and Bob Corker, Science Committee Chairman Bart Gordon, Reps. Marsha Blackburn and Steve Cohen and the staffs of Reps. Zach Wamp and Lincoln Davis, the chancellor made the case for investments in science and research as key to restoring the innovation economy that has driven U.S. prosperity for decades.

"Funding science and research is absolutely critical to our country on so many levels," Zeppos said.

The final package includes the following research funding:

• $8.5 billion for the National Institutes of Health, including expanding jobs in biomedical research to study diseases such as Alzheimer’s, Parkinson’s, cancer, and heart disease.  
• $1.5 billion for NIH to renovate university research facilities and help them compete for biomedical research grants.
• $3 billion for the National Science Foundation, for basic research in fundamental science and engineering.
• $1.6 billion for the Department of Energy’s Office of Science, which funds research in such areas as climate science, biofuels, high-energy physics, nuclear physics and fusion energy sciences.
• $400 million for the Advanced Research Project Agency-Energy, or ARPA-E, a new program championed by Chairman Gordon, to support high-risk, high-payoff research into energy sources and energy efficiency in collaboration with industry.
• $1 billion for NASA, including $400 million to put more scientists to work doing climate change research.
• $580 million for the National Institute of Standards and Technology, including the Technology Innovation Program and the Manufacturing Extension Partnership.

It also includes critical aid to help students and families afford higher education:

• $53.6 billion for a State Fiscal Stabilization Fund, including $40.6 billion to local school districts using existing funding formulas, which can be used for preventing cutbacks or layoffs, for school modernization, or for other purposes; $5 billion to states as bonus grants for meeting key performance measures in education; and $8 billion to states for other high-priority needs such as public safety and other critical services, which may include education.  
• Increase of the maximum Pell Grant by $500, for a maximum of $5,350 in 2009 and $5,550 in 2010.
• An additional $200 million to the vital College Work-Study program.
• Increase of the higher education tax credit to a maximum of $2,500, 40 percent of which will be refundable. 

The package addresses shortfalls in Medicaid by providing an estimated $87 billion over the next two years in additional federal matching funds to help states maintain their Medicaid programs in the face of massive state budget shortfalls.

Once the legislation is signed into law by President Obama, attention shifts to the states and federal agencies charged with dispensing these funds. Most state and federal government agencies are in the process of developing mechanisms through which they will disburse the funds which they will publicize through regular announcements and/or their Web sites. In many cases, federal agencies will be looking to fund existing proposals although, in some cases, new competitions will be announced.

Additional information about the American Recovery and Reinvestment Act can be found through DCbrief, a news service provided by the Office of Federal Relations or by contacting Christina West, director of federal relations.