FY2001 Budget & New Opportunity Agenda Expands the Administration`s Commitment to New Markets and Bringing People into the Economic Mainstream


THE WHITE HOUSE
Office of the Press Secretary


For Immediate Release January 13, 2000



PRESIDENT CLINTONíS FY2001 BUDGET AND NEW OPPORTUNITY AGENDA EXPANDS THE ADMINISTRATIONíS COMMITMENT TO NEW MARKETS AND BRINGING PEOPLE INTO THE ECONOMIC MAINSTREAM

Today, in New York, President Clinton will announce further elements of his new opportunity agenda. Today in New York, President Clinton will announce a series of proposals to help more Americans share in our countryís economic prosperity including:

Building on last yearís momentum, President Clinton will expand upon his commitment to prompt private investment in Americaís urban and rural areas. On two trips last year in July and November, the President led a delegation of CEOs, Members of Congress and Cabinet Secretaries throughout the country to highlight the potential for new private sector investments in economically distressed communities. The President has also announced that he will lead a trip this spring, inspiring investments to close the digital divide. Based on his agreement with Speaker Hastert announced in Chicago last year, the President is committed to developing and passing a bi-partisan New Markets legislative initiative. President Clintonís bold new agenda:

More than Doubles the proposed New Markets Tax Credit to spur $15 billion in new private investment for New Markets. Businesses in our nationís inner cities and isolated rural communities often lack access to equity capital to grow and succeed. For the FY2001 budget, the President proposes a major expansion of his effort to help attract new capital to these businesses through tax credits for equity investments. Last year, Representative Rangel introduced the Presidentís original New Markets tax credit proposal in the House (H.R. 2713), and Senators Rockefeller and Robb introduced similar legislation in the Senate (S. 1526). Here is how the Presidentís newly expanded proposal would work:

Expands the Empowerment Zones Tax INCENTIVES to promote economic growth in underserved areas. In his FY2001 budget, the President will propose a series of measures to extend and improve economic growth in the 31 existing Empowerment Zones and create a Third Round of 10 new Empowerment Zones. The total budget cost of the Presidentís proposals is about $4 billion over 10 years. These measures include:

PROVIDES ACCESS TO FINANCIAL SERVICES TO LOW AND MODERATE INCOME AMERICANS THROUGH FIRST ACCOUNTS. Too many Americans are without banking services--it is estimated that 11 million low-income American families do not have bank accounts. The Federal Reserved estimated that 25 percent of all low-to-moderate income families in 1995 (those earning less than $24,000) had no bank account - about 11 million families. Other studies put the number higher and lower. Today, President Clinton will announce a new initiative called First Accounts to bring the "unbanked" into the financial mainstream. The Treasury Department will include $30 million to pilot strategies to help low- and moderate-income Americans benefit from basic financial services that most people take for granted - like bank accounts and ATM cards. The initiative involves three components:

CONTINUES EFFORTS TO ATTRACT CAPITAL TO UNDERSERVED AREAS AND PROMOTE PUBLIC-PRIVATE PARTNERSHIPS. In addition to the tax incentive programs, key components of the Presidentís New Markets agenda also include:

Roundtable on the Community Reinvestment Act. President Clinton issued an invitation to corporate leaders to participate in a roundtable at the White House to discuss how the business community can build upon the success of the Community Reinvestment Act (CRA). The President stood firm for a strong CRA. President Clinton fought hard to ensure that when bank powers were expanded, banks had to comply with CRA to engage in these new activities. Last year, under CRA, banks and thrifts made $88 billion in loans for home ownership and small businesses in low and moderate income communities. Over 95% of the financial commitments made under CRA have been made in the last six years - over $1 trillion in long-term commitments to lend in communities.

What's New - January 2000

African American History Month

Protecting America’s Natural and Historic Treasures

Remarks by Samuel Berger to the National Press Club

The Lowest Unemployment Rate in 30 Years

President Clinton Announces Bioenergy & Bioproducts Tax Incentives January 27, 2000

President Clinton Proposes to Expand the Earned Income Tax Credit

Unprecedented National Effort to Improve Our Nation’s Schools by Dramatically Increasing Accountability and Investment

FY2001 New Opportunity Agenda

FY2001 Budget & New Opportunity Agenda

President Clinton Unveils First Accounts

Major New Increase in Funding to Determine Environmental Causes of Disease

New Public-Private Partnerships to Increase Aviation Safety

President Clinton Unveils Largest Ever National Gun Enforcement Initiative

New Multimillion Dollar Increase to Combat HIV and AIDS

The President Triples His Long-Term Care Tax Credit

Major New Health Insurance Initiative

A New Opportunity Agenda for Higher Education: Making Critical Investments in Education and Training

College Opportunity Tax Cut: Providing Tax Incentives to Make Higher Education More Affordable

Nearly a $3 Billion Increase in 21st Century Research Fund

Promoting Bioenergy and Biobased Products

Information Technology For the 21st Century

Remarks by the President at Event Commemorating End of Ramadan

Remarks by the President At America’s Millennium Gala - The Lincoln Memorial

Clinton-Gore Administration Proposes Record

National Nanotechnology Initiative: Leading to the Next Industrial Revolution

Getting the Job Done for the American People in 2000

Proclamation: Martin Luther King, Jr., Federal Holiday, 2000

President Clinton Announces New Equal Pay Initiative

Largest Ever National Gun Enforcement Initiative, January 18, 2000

New Responsible Fatherhood Initiative to Promote Work and Boost Child Support Payments

2001 Budget Will Pay Down Debt by 2013

President Clinton Proposes State Licenses for Handgun Purchases

The Clinton-Gore Economic Record: Strong and Sustained Economic Growth

Revitalizing America’s Cities

President Clinton Unveils Millennium Initiative to Promote Delivery of Existing Vaccines in Developing Countries and Accelerate Development of New Vaccines


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