3/03/2010

A lot of "stimulus" money is going for overseas purchases

This shouldn't come as a surprise to anyone and it would have risked trade wars if there had been some broader prohibitions, but it produces a sticky situation for the anti-trade Democrats. With Democrats completely controlling everything, it will be interesting to see how they talk their way out of this one.

Senate Democrats are furious that the vast majority of grants from the clean-energy program from last year’s stimulus have been awarded to foreign companies.

Democratic Sens. Chuck Schumer of New York, Bob Casey of Pennsylvania, Sherrod Brown of Ohio and Jon Tester of Montana announced Wednesday a new initiative to require the "Buy America" provision of the stimulus to all programs, not just the government ones. A study done by the Investigative Reporting Workshop found that 79 percent of the $2 billion in clean-energy grants allocated since Sept. 1, 2009, has gone to foreign wind companies.

"We are demanding the Obama administration suspend this program immediately ... [and] indefinitely," Schumer said. "We are sending a letter to Secretary [Timothy] Geithner asking him to halt all payouts for this program until we in Congress can go back and fix this law."

The senators highlighted a wind farm project in west Texas, which received stimulus aid and is projected to create 3,000 jobs in China and a tenth as many in the United States.

"Some of us complained about this to the administration back in November when this project was first announced, so it's not that they don't know about it, but the Energy Department in their reply said they were powerless to stop it because projects like this are automatically eligible for the grants. That answer is not good enough," Schumer said. . . .

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