WASHINGTON, DC -- In an effort to create jobs and extend critical tax relief and safety net programs through 2010, the U.S. Senate today passed the American Workers, State, and Business Relief Act.

The bill includes key provisions championed by U.S. Senator Jack Reed (D-RI) to extend unemployment insurance (UI) and COBRA health benefits through 2010, providing an estimated $300 million boost to Rhode Island's local economy through the end of the year. Reed's efforts ensured that these benefits were extended all the way through December 31, 2010 instead of for three months, which was proposed in the original bill.

The bill also includes a 6-month extension of federal aid to help the state cope with its budget deficit. The bill would provide Rhode Island with an additional $100 million in federal funding. Senator Reed strongly advocated for this funding to help Rhode Island prevent further cuts in state aid to towns and cities. Such cuts could cause local property tax increases, which would further strain families and businesses during these tough economic times. This funding was included after Reed and others prevailed in adding these kinds of resources to the original version of the bill.

Additionally, the bill contains an income tax deduction for property and sales taxes; tax credits for companies who hire research and development workers; and several energy tax credits. It will also prevent a 21% cut in payments to doctors who care for Rhode Island seniors under the Medicare program.

"This bill will help spur job growth in the private sector and provide significant aid to families, small businesses, and the state. This is a smart investment that will help speed economic recovery and spur consumer demand to sustain the nascent progress we have made in getting our economy back on track," said Reed, who also co-authored the most recent expansion of UI. "I will keep working on more legislation to create jobs and help small business owners in our state, but this federal aid is critical to Rhode Island. It will provide a $400 million boost to help cash-strapped families, and reduce the severity of state and local budget cuts."

The Congressional Budget Office (CBO) concluded that every dollar spent on unemployment assistance generates $1.90 for the overall economy.

"This bill is a positive step, but it is just one of many job-related initiatives that Congress must pass in the near future. In addition to pressing for further legislation to spur job creation, I am also working hard to break the credit log-jam that is hampering so many small businesses in Rhode Island," stated Reed. "In order to achieve long-term economic stability, we must also reform Wall Street and strengthen consumer protections to prevent a repeat of this crisis."