FAQs: Economic Stimulus Package & the SA Community

Funding will be disbursed to specific government agencies throughout the year. It will be overseen by the Recovery Accountability and Transparency Board, made up of inspector generals from various government agencies, to ensure that proper disbursement and expenditure of stimulus funding.

Q: What type of tax relief does the stimulus provide?

A: Various tax relief measures are included in the bill that will affect working-class and middle-class South Asians, including:

• The Making Work Pay Tax Credit which would give $400 to eligible single filers and $800 to joint filers in 2009 and 2010
• Tax credit worth up to $8,000 for individuals who are first-time homebuyers in 2009
• Sales and local tax deductions for first-time buyers of certain vehicles in 2009

For more information on the tax provisions in the stimulus, visit http://www.irs.gov/newsroom/article/0,,id=204335,00.html

Q: Does the stimulus provide any relief to those facing foreclosure and other housing-related difficulties?

A: Somewhat. The need to address foreclosure and housing-related issues is vital for the South Asian community, particularly in light of recent findings by Chhaya CDC showing that 50% of homes in pre-foreclosure in certain sections of New York City are in pre-foreclosure. While much of the foreclosure crisis could be addressed separately through President Obama’s Housing Affordability and Stability Plan that was unveiled in February, there are some provisions in the stimulus pertaining to housing-related issues. Specifically, the Department of Housing and Urban Development received funding for certain programs:

• $3 billion to develop, finance, and modernize public housing
• $2 billion to improve the quality of existing affordable housing projects
• $1 billion to rehabilitate affordable housing and improve public facilities under the Community Development Block Grant Program
• $1.5 billion to reduce homelessness, and prevent it among those facing a sudden economic crisis
• A temporary increase to the loan limits of mortgages insured by the Federal Housing Administration (FHA)

For more information on housing-related measures in the stimulus, visit http://www.hud.gov/recovery/.

Q: I heard that the stimulus has provisions that will impact immigrant workers specifically. What are these measures and how will they affect South Asians?

Employment Pressures Nonprofits that work with South Asians have observed additional challenges facing working-class community members. Andolan, which organizes low-wage domestic workers, has witnessed many of its members being pressured to accept lower wages for the same or an increased workload. The scarcity of jobs has created a situation where members are less likely to report exploitation and many workers are finding themselves out of a job in favor of cheaper labor that has become available.

A: As the stimulus package was being debated in early February, various proposals were considered that would have had a detrimental impact on immigrant workers; many were ultimately defeated. However, one measure that survived will have a negative impact on H1-B workers in the United States. Under this provision, financial institutions receiving funding through the Troubled Assets Relief Program (TARP) will have to demonstrate that they are “H-1B dependent” employers before they can hire such workers. This means that it will be additional bureaucratic burdens for companies seeking to hire workers on H-1B visas, resulting in few H-1B workers getting jobs. The H-1B visa system already mandates significant recruiting and interviewing requirements to ensure that qualified U.S. citizen workers are not displaced.

This change will not only affect employers, but also South Asian workers; in fact, over 130,000 South Asian H-1B visaholders and their dependents entered the country in 2006. Such restrictions could result in the reverse migration of immigrant workers who help drive this country’s economy and innovation, as reported in the recent study, “America’s Loss is the World’s Gain” published by the Duke School of Engineering, UC Berkeley School of Engineering, Harvard Law School, and the Ewing Marion Kauffman Foundation (available at http://www.kauffman.org/uploadedFiles/americas_loss.pdf).

Challenges Accessing Basic Services Social service providers are seeing their constituents and clients facing funding shortfalls in basic services, such as health care. Adhikaar for Human Rights, an organization seeking to promote human rights and social justice in Nepali communities, reports that with two hospitals closing in Queens, NY, South Asians are waiting longer for medical care. Moreover, this places an additional burden on the remaining hospital and stretches their already-thin translation and interpretation service, which many Nepalis require.

Q: Does the stimulus include any changes to make services such as health care and education more accessible for South Asians?

A: Yes. South Asians rely upon a strong and accessible educational system in the United States to lay a foundation for the community’s academic and economic growth. Affordable health care is also a crucial priority for community members, given that over 20% of all South Asians lack health coverage plans and 40% of uninsured South Asians under the age of 65 reported in 2000 as having no regular source of care. There are several provisions within the stimulus package that are aimed at improving access to health care and education, including the following:

• $77 billion of direct funding for education for Head Start programs, and other educational programs
• $30.8 billion to increase college affordability, including expansion of the Pell grant program and increased tax credits for college tuition
• $33.6 billion for school modernization and repair projects
• $15 billion in Medicaid relief to states
• $155 million to support  Community Health Centers across the country

For more information on the stimulus bill’s impact on education programs, visit http://www.ed.gov/policy/gen/leg/recovery/factsheet/overview.html. For more information on its impact on health programs, visit http://www.hhs.gov/recovery/.

Q: Will non-profit organizations serving the South Asian community be able to benefit from any funding in the stimulus?

A: Potentially. Non-profits serving the South Asian community have not only been affected by budget cuts and limited staff during these economic times, but they have also witnessed a surge in the number of requests for assistance coming into their offices. Organizations that provide services in the fields of education, health, housing, and other social services may be able to seek support from various funding measures allocated in the stimulus

The legislation does specifically allocate funding for various initiatives specifically pertaining to violence against women that could assist South Asian women’s organizations. The stimulus provides $225 million to the Office on Violence Against Women within the Department of Justice to support several of its existing programs, including:

• $140 million for the Services Training Officers Prosecutors Formula Grant Program (STOP Program) to enhance services and advocacy to victims, improve the criminal justice system's response, and promote effective law enforcement, prosecution, and judicial strategies to address domestic violence, dating violence, sexual assault, and stalking.
• $8.75 million for State Sexual Assault and Domestic Violence Coalitions to support the coordination of state victim services activities, including collaboration and coordination with federal, state, and local entities. 
• $43 million for the Transitional Housing Assistance Program which provides holistic, victim-centered transitional housing services and related support services that move individuals into permanent housing. 
  

Increased Demand for Services Social service providers that work with South Asian communities have witnessed an increased demand for services. Sakhi for South Asian Women, a community-based organization in the New York metropolitan area which exists to end violence against women, has reported a 5.2% increase in calls for assistance in the fourth quarter of 2008, compared to the final quarter in 2007. Moreover, budget and staff cuts at partner organizations have not only exacerbated the increased demand for services but also reduced partner resources that Sakhi can utilize to respond to community members' needs.

Between March 1990 and March 2007, at least 148 intimate violence-related fatalities or near-fatalities were reported in South Asian community newspapers. In recent months, as the economic climate has declined, South Asian women’s organizations have observed a noticeable increase in domestic violence-related calls for assistance. Such stimulus funding is critical in order to address domestic violence within the South Asian community. For more information about these initiatives, visit http://www.ovw.usdoj.gov/recovery.htm.

For more information on other possible nonprofit grant opportunities, click here.

Organizations can also find tips on how to apply for grants here. 

Q: Where can i  go to learn more about what is in the stimulus and how it will impact me where i live?

A: The White House has set up a website at www.recovery.gov where individuals and organizations can learn more about the contents of the stimulus. On this resource, you can track where exactly assistance is going and access a timeline to see when and how government agencies receiving money will begin using funding.

Click here for printable version