IU could benefit from $789B stimulus package

IU could benefit from the agreement on the $789 billion stimulus package reached Wednesday by the Senate and House of Representatives.

The bill is a trimmed-down version of the original $819 billion plan the House approved in January. The majority of the bill will provide tax relief and create jobs, but some funds will go toward higher education costs.

The vote was almost along party lines, with only three Republicans voting in favor of the bill. Sen. Evan Bayh, D-Ind., voted in favor of the bill, and Sen. Richard Lugar, R-Ind., did not. The House will vote Friday on the final version of the bill, which could be signed by President Barack Obama as early as Monday.

Indiana Sen. Vi Simpson’s spokesperson Pat McLeish said while there will be funding for higher education, the main purpose of the bill is to help the unemployed.

“The main goal is to create jobs due (to) the high unemployment rate,” McLeish said.

The unemployment rate in Indiana reached 8.2 percent in December and is now as high as 15.3 percent in Elkhart, Ind.

McLeish said the exact amount of money Indiana will receive is still uncertain, but the majority of the money will go to public works projects.

“We hope that there will be money for the construction of education buildings and modernization of buildings,” McLeish said.

Higher education funding received support from both Republicans and Democrats, said Tom Morrison, associate vice president for government relations at IU.

“This is the one area that has some agreement across the board,” Morrison said.

IU could receive money indirectly through research grants as well, because funding for the National Institute of Health and the National Science Foundation is included in the bill.

Morrison said the money received through grants could create jobs in the life sciences in the public and private sectors.

Doug Wasitis, director of federal relations for IU, said increased funding for research will create more jobs at IU. To receive money, the University must apply for grants to conduct research.

“Grants are awarded competitively.” Wasitis said. “But IU excels in receiving grants.”
Students might also see financial relief.

The maximum amount of money awarded in Pell grants could be increased to $500 dollars more than the current amount of $4,731.

Morrison said while the University is surviving the recession, it still needs funding, especially for research.

“IU is doing the best it can,” Morrison said. “But relief would be welcome in these tough times.”