LaHood asks states to redouble efforts to use stimulus funds in distressed areas

To date, Secretary of Transportation Ray LaHood said 51.5 percent of stimulus funds have been used in economically distressed areas. (Associated Press)

The Trucker News Services

7/10/2009

WASHINGTON — Secretary of Transportation Ray LaHood has asked the nation’s governors to redouble their efforts to ensure that priority is being given to projects in economically distressed areas when it comes to spending American Reinvestment and Recovery Act funds.

Economically distressed areas are defined by the Public Works and Economic Development Act of 1965 as amended as being areas that have a per capita income of 80 percent or less of the national average, have an unemployment rate that is for the most recent 24-month period for which data are available at least 1 percent greater than the national average unemployment rate, or be an area that the Secretary of Commerce determines has experienced or is about to experience a special need arising from actual or threatened severe unemployment or economic adjustment problems resulting from severe short-term or long-term changes in economic condition.

In a letter to governors released by the Department of Transportation late Thursday, LaHood commend previous efforts.

“While the percent of the nation’s population residing in economically distressed areas is 37.7 percent, nationally 51.5 percent of all Recovery Act funding has been obligated in economically distressed areas,” LaHood wrote. “These numbers clearly indicate that states are working diligently to comply with this provision of the law.”

Given that the number and population of economically distressed areas vary across states and that other factors must be considered in selecting projects, LaHood said the Obama administration did not expect all states to achieve the same level of economically distressed areas project funding.

“Overall, we have found that states are in making their best efforts and using the latest available data to quickly invest Recovery Act funds and generate jobs,” LaHood wrote.  “I appreciate your commitment to this critical issue, given the importance of bringing dollars and jobs to communities that have been hardest hit in this economy.”

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