American Recovery and Reinvestment Act of 2009: Difference between revisions

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[[File:Barack Obama signs American Recovery and Reinvestment Act of 2009 on February 17.jpg|thumb|right|350px|President Obama signs the ARRA into law on February 17, 2009 in Denver, Colorado.]]
The '''American Recovery and Reinvestment Act of 2009''' ({{USBill|111|H.R.|1}}, {{USBill|111|S.|1}}) is a bill passed by the [[111th United States Congress]]. Its legislative history had three versions,LARRY, MOE, and CURLEY GO THERE the first approved by the [[United States House of Representatives|House of Representatives]], a second version approved by the [[United States Senate|Senate]]. The final version, a conference version resulting from negotiations of House and Senate leadership was approved by both houses of Congress on February 13, 2009, and signed on February 17 by [[President of the United States|President]] [[Barack Obama]]. <ref>[http://money.cnn.com/2009/02/17/news/economy/obama_stimulus_meas_success/index.htm?postversion=2009021713 CNN.com February 17, 2009 Stimulus: Now for the hard part]</ref>

Congressional negotiators announced on February 11, 2009, that they had completed the conference report of the bill.<ref name = "nytimesfebeleven" > [http://www.nytimes.com/2009/02/12/us/politics/12stimulus.html?ref=us New York Times] ''Deal Struck on $789 Billion Stimulus.'' New York Times. February 11, 2009.
</ref>
The 1,071 page Conference Report with final handwritten provisions was made available to the public late Friday the 13th.
<ref>
http://www.rules.house.gov/bills_details.aspx?NewsID=4149
</ref>
Reportedly, very few, if any, [[lawmakers]] read the final version before their vote was cast.
<ref>http://www.nypost.com/seven/02152009/news/nationalnews/whats_the_rush__155255.htm</ref><ref> http://cnsnews.com/public/content/article.aspx?RsrcID=43478
</ref>
On February 13, 2009 at 2:24 p.m., the Conference Report was voted on and passed as [http://clerk.house.gov/evs/2009/roll070.xml Roll Call Vote 70] by the House with 246 Yeas and 183 Nays. The vote was largely along party lines with all 246 Yea votes given by Democrats and the Nay vote consisting of 176 Republicans and seven Democrats.<ref name="bbc1">{{cite news|url=http://news.bbc.co.uk/2/hi/business/7889897.stm|title=US Congress passes stimulus plan |date=2009-02-14|publisher=[[BBC]]|accessdate=2009-02-17}}</ref> No Republicans in the House voted for the bill. At 10:48 p.m., the Senate passed the bill by a vote of 60-38, with all Democrats and Independents voting for the bill along with three Republicans.<ref name="bbc1"/> The remaining thirty-eight Republican senators voted against the bill. (Due to his illness, Senator [[Edward M. Kennedy]]-D [[Massachusetts]] was unable to vote; there is one senate vacancy, for Minnesota.)<ref>
{{cite web | url=http://www.msnbc.msn.com/id/29179041/ | date=February 14, 2009 | title=Dems power stimulus bill through Congress | work=Associated Press}}
</ref><ref>
http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00064#position
</ref>
Based largely on broad proposals made by [[President of the United States|President]] [[Barack Obama]], the American Recovery and Reinvestment Act is intended to provide a [[Fiscal policy|stimulus]] to the [[Economy of the United States|U.S. economy]] in the wake of the [[Late 2000s recession|economic downturn]] brought about by the [[subprime mortgage crisis]] and the resulting [[Financial crisis of 2007–2009|credit crunch]]. The bill includes [[Taxation in the United States|federal]] [[tax cut]]s, expansion of [[unemployment benefit]]s and other [[social welfare provision]]s, and domestic spending in [[education]], [[health care]], and [[infrastructure]], including the [[energy]] sector. The 1,071 page new law also includes numerous non-economic recovery related items that were either part of longer-term plans (e.g. a study of the effectiveness of medical treatments) or desired by Congress (e.g. a limitation on executive compensation in federally aided banks added by Senator Dodd and Rep. Frank). The proposed government action is much larger than the [[Economic Stimulus Act of 2008]], which consisted primarily of [[tax rebate]] checks. President Obama signed the bill into law at an economic forum he was hosting in [[Denver]], [[Colorado]] on [[Tuesday]], [[February 17]], [[2009]], upon returning to work after a 4-day weekend<ref>http://www.nypost.com/seven/02152009/news/nationalnews/whats_the_rush__155255.htm</ref> in his hometown of [[Chicago]].<ref>
{{cite news | title = Obama: Stimulus money is taxpayers' | work = | language = English| publisher = ''The Washington Times''| date = 14 February 2009| url = http://www.washingtontimes.com/news/2009/feb/14/obama-stimulus-money-taxpayers/ | accessdate = February 14, 2009}}
</ref>

==Legislative history==
===House of Representatives===
The House version of the bill, {{USBill|111|H.R.|1}}, was introduced on January 25, 2009. It was sponsored by Representative [[David Obey]] of [[Wisconsin]], the [[United States House Committee on Appropriations|House Appropriations Committee]] chairman, and was co-sponsored by nine other Democratic representatives. On January 23, [[Speaker of the United States House of Representatives|Speaker of the House]] [[Nancy Pelosi]] said that the bill was on track to be presented to President Obama for him to sign into law before February 16, 2009.<ref>
{{cite web | url=http://www.newsday.com/services/newspaper/printedition/saturday/news/ny-bzecon246010682jan24,0,7242108.story | date=January 24, 2009 | title=Obama seeks congressional consensus on stimulus plan | work=Newsday}}
</ref> Although 206 amendments were scheduled for floor votes, they were combined into only 11, which enabled quicker passage of the bill.<ref>
[http://www.cqpolitics.com/wmspage.cfm?docID=news-000003019194&parm1=2&cpage=1 cqpolitics.com]
</ref>

On January 28, 2009, the House passed the bill by a 244-188 vote.<ref name="House vote">
{{cite web | url=http://www.nytimes.com/2009/01/29/us/politics/29obama.html?hp | title=House Passes Stimulus Plan Despite G.O.P. Opposition | work=New York Times | date=January 29, 2009}}</ref> All but 11 Democrats voted for the bill, and 177 [[Republican Party (United States)|Republicans]] voted against it (one Republican, [[Ginny Brown-Waite]] (R-[[Florida's 5th congressional district|FL]]), did not vote).<ref>
[http://www.govtrack.us/congress/vote.xpd?vote=h2009-46 House Vote On Passage: H.R. 1: American Recovery and Reinvestment Act of 2009] </ref>

On February 12, 2009, House Majority Leader [[Steny Hoyer]] scheduled the vote on the bill for the next day, before wording on the bill's content had been completed and despite House Democrats having previously promised to allow a 48-hour public review period before any vote. The bill was not completed and posted on a House website until 10:45 PM on February 12.<ref>
[http://www.nytimes.com/2009/02/13/us/politics/13stimulus.html Even After the Deal, Tinkering Goes On], The New York Times, February 12, 2009
</ref>
The next day, the House passed a revised version of the bill by a vote of 246-183,<ref>
The Senate passed the bill with 60 votes later that night.[http://clerk.house.gov/cgi-bin/vote.asp?year=2009&rollnumber=70 FINAL VOTE RESULTS FOR ROLL CALL 70]
</ref>
with no Republicans voting in favor and 7 Democrats voting against.<ref>
[http://www.breitbart.com/article.php?id=D96AST680&show_article=1 House passes Obama's economic stimulus bill]
</ref>

===Senate===
The Senate version of the bill, {{USBill|111|S.|1}}, was introduced on January 6, 2009, and later substituted as an amendment to the House bill, {{USBill|111|SA|570}}. It was sponsored by Senator [[Harry Reid]] of [[Nevada]], the [[Majority Leader of the United States Senate|Senate Majority Leader]], co-sponsored by 16 other Democratic senators and [[Joe Lieberman]] of [[Connecticut]], an [[Independent (politician)|independent]] who [[Democratic Caucus of the United States Senate|caucuses with the Democrats]].

The Senate then began consideration of the bill starting with the $275 billion tax provisions in the week of February 2, 2009.<ref>
[http://www.newsday.com/services/newspaper/printedition/saturday/news/ny-bzecon246010682jan24,0,7242108.story NewsDay.com]
</ref>
A significant difference between the House version and the Senate version is the inclusion of a one-year extension of revisions to the [[alternative minimum tax]] which added $70 billion to the bill's total.

Republicans proposed several amendments to the plan directed at increasing the share of tax cuts in the plan and downsizing the spending portion as well as decreasing the overall price tag of the plan.<ref>
For example: {{USBill|111|SA|106}}, {{USBill|111|SA|107}}, {{USBill|111|SA|108}}, and {{USBill|111|SA|109}}s
</ref>
President Obama and Senate Democrats hinted that they would be willing to compromise on Republican suggestions to increase infrastructure spending and to double the housing tax credit proposed from $7,500 to $15,000 and expand its application to all home buyers, not just first-time buyers.<ref>
{{Cite web | title=Obama Predicts Support From G.O.P. for Stimulus Proposal | url=http://www.nytimes.com/2009/02/02/us/politics/02obama.html?ref=business | work=New York Times | date=February 2, 2009 | author=Sheryl Gay Stolberg}}
</ref>

The Senate called a special Saturday debate session for February 7 at the urging of President Obama. With a vote of 61-36 (with 2 not voting) the Senate voted on February 9 to end debate on the bill and advance it to the Senate floor to vote on the bill itself.<ref>
[http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00059 Roll call vote 59]</ref> On February 10, the Senate voted 61-37 (with one 1 not voting)<ref>
Senator [[Judd Gregg]] (R-NH) did not vote because, at the time, he was a nominee of the Democratic president to become [[United States Secretary of Commerce|Secretary of Commerce]]. Gregg also did not participate in the cloture vote.
</ref>
All the Democrats voted in favor, but only three Republicans voted in favor ([[Susan Collins]], [[Olympia Snowe]], and [[Arlen Specter]]).<ref>
[http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=111&session=1&vote=00060 Roll call vote 60]</ref> At one point, the Senate bill stood at $838 billion.<ref>
{{cite web | author= David Espo | work= [[Associated Press]] via [[Atlanta Journal-Constitution]] | url=http://www.ajc.com/services/content/printedition/2009/02/10/stimulus0210.html | title=Stimulus bill survives Senate test}}
</ref>

==Comparison of the House, Senate and Conference versions==
A comparison of the $827 billion economic recovery plan drafted by Senate Democrats and President Barack Obama with a $820 billion version passed by the House and the final $787 billion Conference version. Additional debt costs would add about $350 billion or more over 10 years. Many provisions expire in two years.<ref>
[http://www.msnbc.msn.com/id/29050187 "Stimulus bill far from perfect, Obama says" MSNBC]
</ref>

The main funding differences between the Senate bill and the House bill are: More funds for health care in the Senate ( $153.3 vs $140 billion), for green energy programs ($74 vs. $39.4 billion) and for home buyers tax credit ($35.5 vs. $2.6 billion). The House has more funds appropriated for education ($143 vs. $119.1 billion), infrastructure ($90.4 vs. $62 billion) and for aid to the poor and unemployed ($71.5 vs. $66.5 billion).<ref>
Stimulus bill survives Senate test http://www.ajc.com/services/content/printedition/2009/02/10/stimulus0210.html
</ref>

{{Unreferenced|part of the article comparing versions of the legislation and detailing allocated expenditures|date=February 2009}}
===Spending (Senate-$552 billion, House-$545 billion)===
*Aid to poor and unemployed
**Senate — $47 billion to provide extended unemployment benefits through Dec. 31, increased by $25 a week, and provide job training; $16.5 billion to increase [[food stamp]] benefits by 12 percent through fiscal 2011 and issue a one-time bonus payment; $3 billion in temporary welfare payments.
**House — Comparable extension of [[unemployment insurance]]; $20 billion to increase food stamp benefits by 14 percent; $2.5 billion in temporary welfare payments; $1 billion for home heating subsidies and $1 billion for community action agencies.
*Direct cash payments
**Senate — $17 billion to give one-time $300 payments to [[Social Security (United States)|Social Security]] recipients, poor people on Supplemental Security Income, and veterans receiving disability and pensions.
**House — $4 billion to provide a one-time additional Supplemental Security Income payment to poor, elderly, and disabled people of $450 for individuals and $630 for married couples.
**Conference - $250 one-time payment to each recipient of Social Security, Veterans pension, Railroad Retirement, Supplemental Security Income or State retirement system. <ref>Conference report 111-16, 2/13/09 </ref>
*Infrastructure
**Senate — $46 billion for transportation projects, including $27 billion for highway and bridge construction and repair and $11.5 billion for mass transit and rail projects; $4.6 billion for the Army Corps of Engineers; $5 billion for public housing improvements; $6.4 billion for clean and drinking water projects.
**House — $47 billion for transportation projects, including $27 billion for highway and bridge construction and repair and $12 billion for mass transit, including $7.5 billion to buy transit equipment such as buses; and $31 billion to build and repair federal buildings and other public infrastructures.
*Health care
**Senate — $21 billion to subsidize the cost of continuing health care insurance for the involuntarily unemployed under the [[Consolidated Omnibus Budget Reconciliation Act of 1985|COBRA]] program; $87 billion to help states with [[Medicaid]]; $22 billion to modernize health information technology systems; and $10 billion for health research and construction of [[National Institutes of Health]] facilities.
**House — $40 billion to subsidize the cost of continuing health care insurance for the involuntarily unemployed under the COBRA program or provide health care through Medicaid; $87 billion to help states with Medicaid; $20 billion to modernize health information technology systems; $4 billion for preventative care; $1.5 billion for community health centers; $420 million to combat avian flu; $335 million for programs that combat AIDS, sexually transmitted diseases and tuberculosis.
**Conference - A 65% COBRA subsidy will apply to workers laid off between Sept. 1, 2008 and Dec. 31, 2009. Those already laid off have 60 days to apply for COBRA. <ref>Conference report 111-16</ref>

*Education
**Senate — $55 billion in state fiscal relief to prevent cuts in education aid and provide block grants; $25 billion to school districts to fund special education and the [[No Child Left Behind]] K-12 law; $14 billion to boost the maximum [[Pell Grant]] by $400 to $5,250; $2 billion for [[Head Start]].
**House — Similar aid to states and school districts; $21 billion for school modernization; $16 billion to boost the maximum Pell Grant by $500 to $5,350; $2 billion for Head Start.
**Conference - The Conference Report merged most education aid with the State Fiscal Stabilization fund (administered by the Department of Education)and gave power over the funds to each governor under voluminous restrictions. The Governor is "Required" to spend $45 billion of the money on education to restore funding to 2008 levels but the mechanisms to enforce state maintenance of effort at 2005-06 levels are complex and potentially impossible to implement. <ref>Conference report 111-16, 2-13-09, Title 14</ref> Hard hit states such as Nevada cannot possibly find enough funds to get to the 2005-06 state funding levels for education. <ref>http://www.lvrj.com/news/39257837.html</ref> Some states with no current budget cuts for education, such as Arkansas and North Carolina, may get nothing.<ref>, NYT 2-15-09 </ref> This will result in a monumental 50 state legal and political fight over how to re-budget to best take advantage of the Federal legislation. Many states will further reduce state funds for education to the 2005-06 minimum so these state resources can be used for other state priorities and the net gain for education will be far less then the total Federal appropriation.

*Energy
**Senate — $40 billion for energy efficiency and renewable energy programs, including $2.9 billion to weatherize modest-income homes; $4.6 billion for fossil fuel research and development; $6.4 billion to clean up nuclear weapons production sites; $11 billion toward a so-called smart electricity grid to reduce waste; $8.5 billion to subsidize loans for renewable energy projects; and $2 billion for advanced battery systems.
**House — $28.4 billion for energy efficiency and renewable energy programs, including $6.2 billion to weatherize homes; $11 billion to fund a smart electricity grid.
*Homeland security
**Senate — $4.7 billion for homeland security programs, including $1 billion for airport screening equipment and $800 million for port security.
**House — $1.1 billion, including $500 million for airport screening equipment.
*Law enforcement
**Senate — $3.5 billion in grants to state and local law enforcement to hire officers and purchase equipment.
**House — Comparable provision.

===Taxes ($275 billion)===
*New tax credit
**House— About $145 billion for $500 per-worker, $1,000 per-couple tax credits in 2009 and 2010. For the last half of 2009, workers could expect to see about $20 a week less withheld from their paychecks starting around June. Millions of Americans who don’t make enough money to pay federal income taxes could file returns next year and receive checks. Individuals making more than $75,000 and couples making more than $150,000 would receive reduced amounts.
**Senate — The credit would phase out at incomes of $70,000 for individuals and couples making more than $140,000 and phase out more quickly, reducing the cost to $140 billion.
**Conference- Tax Credit reduced to $400 per worker and $800 per couple in 2009 and 2010 and phaseout begins at $75,000 for individuals and $150,000 for joint filers. Note retirees with no wages get nothing.<ref>House Conference report 111-? Final partially handwritten report released by Nancy Pelosi's Office 2/13/09</ref>

*[[Alternative minimum tax]]
**House — No provision.
**Senate — About $70 billion to prevent 24 million taxpayers from paying the alternative minimum tax in 2009. The tax was designed to make sure wealthy taxpayers can’t use credits and deductions to avoid paying any taxes or paying at a far lower rate than would otherwise be possible. But it was never indexed to inflation, so critics now contend it taxes people it was not intended to. Congress addresses it each year, usually in the fall.
**Conference - Includes a one year increase in AMT floor to $70,950 for joint filers for 2009.<ref>House Conference report 111-? Final partially handwritten report released by Nancy Pelosi's Office 2/13/09</ref>

*Expanded child credit
**House — $18.3 billion to give greater access to the $1,000 per-child tax credit for the working poor in 2009 and 2010. Under current law, workers must make at least $12,550 to receive any portion of the credit. The change eliminates the floor, meaning more workers who pay no federal income taxes could receive checks.
**Senate — Sets a new income threshold of $8,100 to receive any portion of the credit, reducing the cost to $7.5 billion.
**Conference - The income floor for refunds was set at $3,000 for 2009 & 2010.<ref>House Conference report 111-16 2/13/09</ref>
*Expanded earned income tax credit
**House — $4.7 billion to increase the [[earned income tax credit]] — which provides money to the working poor — for families with at least three children.
**Senate — Same.
*Expanded college credit
**House — $13.7 billion to provide a $2,500 expanded tax credit for college tuition and related expenses for 2009 and 2010. The credit is phased out for couples making more than $160,000.
**Senate — Reduces the amount that can be refunded to low-income families that pay no income taxes, lowering the cost to $13 billion.
*Homebuyer credit
**House — $2.6 billion to repeal a requirement that a $7,500 first-time homebuyer tax credit be paid back over time for homes purchased from Jan. 1 to July 1, unless the home is sold within three years. The credit is phased out for couples making more than $150,000.
**Senate — Doubles the credit to $15,000 for homes purchased for a year after the bill takes effect, increasing the cost to $35.5 billion.
**Conference - $8,000 credit for all homes bought between 1/1/2009 and 12/1/2009 and repayment provision repealed for homes purchased in 2009 and held more than 3 years.<ref>House Conference report 111-16 2/13/09</ref>
*Home energy credit
**House — $4.3 billion to provide an expanded credit to homeowners who make their homes more energy-efficient in 2009 and 2010. Homeowners could recoup 30 percent of the cost up to $1,500 of numerous projects, such as installing energy-efficient windows, doors, furnaces and air conditioners.
**Senate — Same.
**Conference - Same;
*Unemployment
**House — No similar provision.
**Senate — $4.7 billion to exclude from taxation the first $2,400 a person receives in unemployment compensation benefits in 2009.
**Conference -- Same as Senate
*Bonus depreciation
**House — $5 billion to extend a provision allowing businesses buying equipment such as computers to speed up its depreciation through 2009.
**Senate — Similar.
*Money losing companies
**House — $15 billion to allow companies to use current losses to offset profits made in the previous five years, instead of two, making them eligible for tax refunds.
**Senate — Allows companies to use more of their losses to offset previous profits, increasing the cost to $19.5 billion.
**Conference - Limits the carry-back to small companies, revenue under $5 million <ref>WSJ Feb. 12, 2009</ref>
*Government contractors
**House — Repeal a law that takes effect in 2011, requiring government agencies to withhold 3 percent of payments to contractors to help ensure they pay their tax bills. Repealing the law would cost $11 billion over 10 years, in part because the government could not earn interest by holding the money throughout the year.
**Senate — Delays the law from taking effect until 2012, reducing the cost to $291 million.
*Energy production
**House — $13 billion to extend tax credits for renewable energy production.
**Senate — Same.
**Conference - Extension is to 2014.
*Repeal bank credit
**House — Repeal a Treasury provision that allowed firms that buy money-losing banks to use more of the losses as tax credits to offset the profits of the merged banks for tax purposes. The change would increase taxes on the merged banks by $7 billion over 10 years.
**Senate — Same.

*Bonds
**House — $36 billion to subsidize locally issued bonds for school construction, teacher training, economic development and infrastructure improvements.
**Senate — $22.8 billion to subsidize locally issued bonds for school construction, industrial development and infrastructure improvements.

*Auto sales
**House — No similar provision.
**Senate — $11 billion to make interest payments on most auto loans and [[sales tax]] on cars deductible.
**Conference - $2 billion for deduction of sales tax, not interest payments phased out for incomes above $250,000<ref>Conference Report 111-16, 2-13-09</ref>.



==Provisions of the final bill==
The final $787 billion version signed by President Obama on February 17, 2009 includes the following:

===[[United States Department of Defense|Department of Defense]] facilities===
*$4.2 billion to repair and modernize Department of Defense facilities<ref name="pdf1">{{cite news|url=http://appropriations.house.gov/pdf/PressSummary02-13-09.pdf|title=SUMMARY: AMERICAN RECOVERY AND REINVESTMENT|date=2009-02-13|publisher=Committee on Appropriations|accessdate=2009-02-17}}</ref>
*$1.3 billion for medical care for service members and their families<ref name="pdf1"/>
*$890 million to improve housing for service members<ref name="pdf1"/>
*$240 million for new [[child development]] centers<ref name="pdf1"/>
*$150 million for the construction of state extended-care facilities<ref name="pdf1"/>
*$150 million for an increase of claims processing staff<ref name="pdf1"/>
*$100 million to improve facilities of the [[National Guard of the United States|National Guard]]<ref name="pdf1"/>

===Education===
*$15.6 billion to increase [[Pell Grant]]s by $500 to $5,350<ref name="pdf1"/>
*$13 billion for low-income public schoolchildren<ref name="pdf1"/>
*$12.2 billion for [[Individuals with Disabilities Education Act|IDEA special education]]<ref name="pdf1"/>
*$2.1 billion for [[Head Start]]<ref name="pdf1"/>
*$2 billion for [[childcare]] services<ref name="pdf1"/>
*$650 million for [[educational technology]]<ref name="pdf1"/>
*$300 million for increased teacher salaries<ref name="pdf1"/>
*$250 million for states to analyze student performance<ref name="pdf1"/>
*$200 million to support working college students<ref name="pdf1"/>
*$70 million for the education of homeless children<ref name="pdf1"/>

===Energy===
*$11 billion funding for an electric [[smart grid]]<ref name="pdf1"/>
*$6.3 billion for state and local governments to make investments in energy efficiency<ref name="pdf1"/>
*$6 billion for [[renewable energy]] power generation loans<ref name="pdf1"/>
*$5 billion for [[weatherization|weatherizing]] modest-income homes<ref name="pdf1"/>
*$4.5 billion for state and local governments to increase energy efficiency in federal buildings<ref name="pdf1"/>
*$3.4 billion for carbon capture experiments<ref name="pdf1"/>
*$2.5 billion for energy efficiency research<ref name="pdf1"/>
*$2 billion for [[car battery]] research<ref name="pdf1"/>
*$500 million for training of [[green-collar worker]]s<ref name="pdf1"/>
*$400 million for electric vehicle technologies<ref name="pdf1"/>
*$300 million to buy energy efficient appliances<ref name="pdf1"/>
*$300 million for reducing [[diesel fuel]] emissions<ref name="pdf1"/>
*$300 million for state and local governments to purchase energy efficient vehicles<ref name="pdf1"/>
*$250 million to increase energy efficiency in low-income housing<ref name="pdf1"/>

===Environmental cleanup===
*$6 billion for the cleanup of [[radioactive waste]]<ref name="pdf1"/>
*$600 million to cleanup [[hazardous waste]] that threaten health and the environment<ref name="pdf1"/>
*$200 million to cleanup petroleum leaks from [[underground storage tank]]s<ref name="pdf1"/>
*$100 million to evaluate and cleanup [[brownfield land]]<ref name="pdf1"/>

===Government technology improvements===
*$500 million to update the computer center at the [[Social Security Administration]]<ref name="pdf1"/>
*$290 million to upgrade IT platforms at the [[United States Department of State|State Department]]<ref name="pdf1"/>
*$50 million for IT improvements at the [[Farm Service Agency]]<ref name="pdf1"/>
*$24 million to improve security systems at the [[United States Department of Agriculture|Department of Agriculture]] headquarters<ref name="pdf1"/>

===Healthcare===
*$19 billion for [[health information technology]]<ref name="pdf1"/>
*$2 billion for [[Community Health Center]]s<ref name="pdf1"/>
*$1.1 billion to research the effectiveness of certain healthcare treatments<ref name="pdf1"/>
*$1 billion to fight preventable chronic diseases<ref name="pdf1"/>
*$500 million to train healthcare personnel<ref name="pdf1"/>
*$500 million for healthcare services on [[indian reservation]]s<ref name="pdf1"/>

===Housing===
*$4 billion for repairing and modernizing public housing<ref name="pdf1"/>
*$2.25 billion in tax credits for financing low-income housing construction<ref name="pdf1"/>
*$2 billion for [[Section 8 (housing)|Section 8 housing]] rental assistance<ref name="pdf1"/>
*$2 billion to help communities purchase and repair foreclosed housing<ref name="pdf1"/>
*$1.5 billion for rental assistance and housing relocation<ref name="pdf1"/>
*$510 million for the rehabilitation of Native American housing<ref name="pdf1"/>
*$200 million for helping rural Americans buy homes<ref name="pdf1"/>
*$130 million for rural community facilities<ref name="pdf1"/>
*$100 million to help remove [[lead paint]] from public housing<ref name="pdf1"/>

===Hunger assistance===
*$19.9 billion for the [[Food Stamp Program]]<ref name="pdf1"/>
*$150 million to help refill [[food bank]]s<ref name="pdf1"/>
*$100 million for meals programs for seniors, such as [[Meals on Wheels]]<ref name="pdf1"/>
*$100 million for [[National School Lunch Act|free school lunch programs]]<ref name="pdf1"/>

===Job assistance===
*$3.95 billion for job training<ref name="pdf1"/>
*$500 million for vocational training for the disabled<ref name="pdf1"/>
*$400 million for employment services<ref name="pdf1"/>
*$120 million for subsidized community service jobs for older Americans<ref name="pdf1"/>

===Other infrastructure projects===
*$4.6 billion for the [[United States Army Corps of Engineers|Army Corps of Engineers]] for environmental restoration, flood protection, hydropower, and navigation infrastructure projects<ref name="pdf1"/>
*$4 billion for the [[Clean Water State Revolving Fund]] (wastewater treatment infrastructure improvements)<ref name="pdf1"/>
*$2 billion for the Drinking Water State Revolving Fund (drinking water infrastructure improvements)<ref name="pdf1"/>
*$1.38 billion for rural drinking water and waste disposal projects<ref name="pdf1"/>
*$1 billion to the [[United States Bureau of Reclamation|Bureau of Reclamation]] for drinking water projects for rural or drought-likely areas<ref name="pdf1"/>
*$750 million to the [[National Park Service]]<ref name="pdf1"/>
*$650 million to the [[United States Forest Service|Forest Service]]<ref name="pdf1"/>
*$515 million for wildfire prevention projects<ref name="pdf1"/>
*$500 million for [[Bureau of Indian Affairs]] infrastructure projects<ref name="pdf1"/>
*$340 million to the [[Natural Resources Conservation Service]] for watershed infrastructure projects<ref name="pdf1"/>
*$320 million to the [[Bureau of Land Management]]<ref name="pdf1"/>
*$280 million for [[National Wildlife Refuge]]s<ref name="pdf1"/>
*$280 million for the [[National Fish Hatchery System]]<ref name="pdf1"/>
*$250 million to improve [[Job Corps]] training facilities<ref name="pdf1"/>
*$220 million to the [[International Boundary and Water Commission]] to repair flood control systems along the [[Rio Grande]]<ref name="pdf1"/>
*$220 million for other public lands management agencies<ref name="pdf1"/>
*$50 million for the [[National Endowment for the Arts]] to support artists<ref name="pdf1"/>

===Other job programs===
*$4 billion for state and local [[law enforcement]] agencies<ref name="pdf1"/>
*$1 billion in preparation for the [[2010 United States Census|2010 census]]<ref name="pdf1"/>
*$210 million to build and upgrade [[fire station]]s<ref name="pdf1"/>
*$150 million for the security of transit systems<ref name="pdf1"/>
*$150 million for the security of ports<ref name="pdf1"/>

===Other worker assistance programs===
*$4.2 billion to provide an additional [[Social Security (United States)|Social Security]] payment in 2009<ref name="pdf1"/>
*$1 billion to community action agencies<ref name="pdf1"/>
*$1 billion for community and economic developement projects<ref name="pdf1"/>
*$500 million to help the [[Social Security Administration]] process disability and retirement claims<ref name="pdf1"/>
*$200 million for [[AmeriCorps]] programs<ref name="pdf1"/>
*$140 million for [[independent living]] communities<ref name="pdf1"/>
*$100 million for food, shelter and support services<ref name="pdf1"/>
*$80 million to the [[United States Department of Labor|Department of Labor]] Worker Protection and Oversight agency to enforce worker protection laws<ref name="pdf1"/>
*$50 million in grants for community "safety net" organizations<ref name="pdf1"/>

===Scientific research===
*$8.7 billion to the [[National Institutes of Health]]<ref name="pdf1"/>
*$3 billion to the [[National Science Foundation]]<ref name="pdf1"/>
*$2 billion to the [[United States Department of Energy]]<ref name="pdf1"/>
*$1.3 billion for university research facilities<ref name="pdf1"/>
*$1 billion to [[NASA]]<ref name="pdf1"/>
*$600 million to the [[National Oceanic and Atmospheric Administration]] (NOAA)<ref name="pdf1"/>
*$580 million to the [[National Institute of Standards and Technology]]<ref name="pdf1"/>
*$230 million for NOAA operations, research and facilities<ref name="pdf1"/>
*$140 million to the [[United States Geological Survey]]<ref name="pdf1"/>

===Telecommunications and [[DTV transition in the United States|Digital TV]]===
*$7.2 billion for complete [[broadband Internet access|broadband]] and [[Wi-Fi|wireless]] [[Internet]] access<ref name="pdf1"/>
*$650 million for [[Coupon-eligible converter box|DTV conversion coupons]] and DTV education<ref name="pdf1"/>

===Transportation projects===
*$27.5 billion for [[highway]] and [[bridge]] [[construction]] projects<ref name="pdf1"/>
*$8 billion for [[high-speed rail]] projects<ref name="pdf1"/>
*$6.9 billion for new equipment for public transportation projects<ref name="pdf1"/>
*$1.5 billion for competitive grants to state and local governments for transportation investments<ref name="pdf1"/>
*$1.3 billion for [[Amtrak]]<ref name="pdf1"/>
*$1.1 billion for improving [[airport]] security<ref name="pdf1"/>
*$750 million for the construction of new public rail transportation systems<ref name="pdf1"/>
*$750 million for the maintenance of existing public transportation systems<ref name="pdf1"/>
*$720 million for improving security at the border and ports of entry<ref name="pdf1"/>
*$240 million for the maintenance of [[United States Coast Guard]] facilities<ref name="pdf1"/>

===Veterans Affairs facilities===
*$1 billion for the [[Veterans Health Administration]]<ref name="pdf1"/>
*$50 million for the [[United States National Cemetery|National Cemetery Administration]]<ref name="pdf1"/>

==Reaction by economists==

Economists such as Nobel Prize winner [[Joseph Stiglitz]],<ref>
[http://news.morningstar.com/newsnet/ViewNews.aspx?article=/DJ/200901141002DOWJONESDJONLINE000637_univ.xml Stiglitz: Stimulus Must Be Big, Provide Relief To States], morningstar.com</ref> [[Martin Feldstein]], [[Daron Acemoglu]], National Economic Council director [[Larry Summers]], and Nobel Prize winner [[Paul Krugman]]<ref>
[http://www.nytimes.com/2008/01/25/opinion/25krugman.html Stimulus Gone Bad], NYTimes.com
</ref>
favor large economic stimulus to counter the economic downturn. Some economists, such as Stiglitz and Krugman favor a much larger measure. While in favor of a stimulus package, Feldstein expressed concern over the act as written, saying it needs revision to address consumer spending and unemployment more directly.
<ref>
[http://www.bostonherald.com/business/general/view/2009_01_30_Harvard_prof_slams_stimulus_plan:_Dems___800b_%E2%80%98mistake_/ Boston Herald], January 30, 2009</ref> Other economists, including Nobel Prize-winner [[Robert Lucas, Jr.]]<ref>
[http://online.wsj.com/article/SB122999959052129273.html Bernanke Is the Best Stimulus Right Now], wsj.com</ref>, [[Vernon L. Smith]], [[Edward C. Prescott]], [[James M. Buchanan]], [[John Lott]],<ref>[http://www.foxnews.com/story/0,2933,487425,00.html]</ref> and [[Robert Barro]], have been more critical of the package, saying that it will increase unemployment and place more debt on future generations.<ref>
[http://www.investors.com/editorial/IBDArticles.asp?artsec=5&issue=20090128 Investor's Business Daily]
</ref>

On January 28, 2009, a full page advertisement with the names of approximately 200 economists who are against President Obama's plan appeared in [[The New York Times]] and [[The Wall St. Journal]]. The funding for this advertisement came from the [[Cato Institute]]. The ad stated, "... we the undersigned do not believe that more government spending is a way to improve economic performance. More government spending by Hoover and Roosevelt did not pull the United States economy out of the Great Depression in the 1930s... To improve the economy, policymakers should focus on reforms that remove impediments to work, savings, investment, and production. Lower tax rates and a reduction in the burden of government are the best ways of using fiscal policy to boost growth."<ref>
[http://www.stltoday.com/blogzone/mound-city-money/us-economy/2009/01/economists-say-stimulus-wont-work/ Economists say stimulus won’t work], St. Louis Post-Dispatch, January 29, 2009
</ref><ref>
[http://cato.org/special/stimulus09/cato_stimulus.pdf Cato Institute petition against Obama 2009 stimulus plan]
</ref>

On February 8, 2009, it was reported that a different petition, also signed by approximately 200 economists, but this one being in favor of President Obama's plan, had been created. This petition was written by the liberal [[Center for American Progress Action Fund]]. The petition said that President Obama's plan "proposes important investments that can start to overcome the nation's damaging loss of jobs," and that it would "put the United States back onto a sustainable long-term-growth path."<ref>
[http://www.philly.com/philly/hp/news_update/20090208_Polarized_Economists.html Polarized Economists], The Philadelphia Enquirer, February 8, 2009.
</ref>

==Congressional Budget Office report==
A February 4, 2009, report by the [[Congressional Budget Office]] said that while the stimulus would increase economic output and employment in the short run, the [[GDP]] would, by 2019, have an estimated net decrease between 0.1% and 0.3% (as compared to the CBO estimated GDP baseline).<ref>
[http://cbo.gov/ftpdocs/96xx/doc9619/Gregg.pdf Official CBO report to the Senate budget committee]
</ref>

The CBO estimates that enacting the bill would increase federal budget deficits by $185 billion over the remaining months of fiscal year 2009, by $399 billion in 2010, by $134 billion in 2011, and by $787 billion over the 2009-2019 period.<ref>[http://www.cbo.gov/ftpdocs/99xx/doc9989/hr1conference.pdf CBO-Budgetary Impact of ARRA]</ref>

==Proposed amendments==
===FREEDOM Act of 2009===
[[Senate Finance Committee]] members [[Maria Cantwell]] (D-WA) and [[Orrin Hatch]] (R-UT), moved to include tax incentives for [[battery electric vehicle|plug-in electric vehicles]] to the stimulus plan currently being considered by Congress.<ref name ="Cantwell">
[http://cantwell.senate.gov/news/record.cfm?id=306895 cantwell.senate.gov]
</ref>

The FREEDOM Act of 2009 provisions include:<ref name="Cantwell"/>:
*Manufacturer Investment/Retooling Incentives — 100 percent immediate expensing of investments in production property by plug-in electric vehicle and component manufacturers through 2013. Later investments would be eligible for 50 percent expensing through 2016. Manufacturers currently without tax liabilities can access unused AMT credits.
*Tax Relief for Car Buyers — Doubling the number of plug-in electric vehicles eligible for existing consumer tax incentives (from 250,000 to 500,000); and extending scaled incentives for 2 and 3-wheeled vehicles and low-speed vehicles.
*Plug-in Conversion Credits — Tax credits of up to $4,000 for consumers who invest in equipment to convert their existing hybrids to plug-in hybrid electrics.
*Deployment Incentives — Modify the depreciation schedule for smart meters from seven to five years (to match other schedule for other computer equipment) and augment existing tax incentives for the installation of electric vehicle refueling stations.

===DeMint Amendment Against Religious Discrimination===
Senator [[Jim DeMint]] (R-SC) proposed an amendment to remove language from the bill that would prohibit funds which would be "used for sectarian instruction, religious worship, or a school or department of divinity; or in which a substantial portion of the functions of the facilities are subsumed in a religious mission"<ref>
[http://thomas.loc.gov/cgi-bin/query/F?c111:1:./temp/~c111awnQys:e226884: HR1. SEC. 9302. HIGHER EDUCATION MODERNIZATION, RENOVATION, AND REPAIR.]
</ref>
The amendment was rejected by a vote of 54-43.<ref>
[http://www.govtrack.us/congress/vote.xpd?vote=s2009-47 S.Amdt. 189. Vote on Amendment]
</ref>

==References==
{{reflist|2}}

==See also==
*[[Alternative Minimum Tax]]
*[[Energy Independence and Security Act of 2007]]
*[[Green New Deal]]
*[[Green job]]
*[[New Deal]]
*[[Presidential transition of Barack Obama]]
*[[Presidency of Barack Obama]]

==External links==
{{Wikisource}}
{{Commonscat}}
*[http://stimuluswiki.com/w/index.php/Main_Page StimulusWiki.com] - A wiki that helps break down and explain the stimulus bill
*[http://uspoliticalspectrum.com/review.php?p=package ARRA of 2009 | The US Political Spectrum] - News and Comments on stimulus bill
*[http://publicservice.evendon.com/RecoveryBill1M.htm RecoveryBill] - Full text of American Recovery and Reinvestment Act of 2009
*[http://recovery.gov/ Recovery.gov] - A website of the Executive for transparency of actions taken under the American Recovery and Reinvestment Act of 2009

{{2008 economic crisis}}

[[Category:Credit]]
[[Category:Debt]]
[[Category:Economic problems]]
[[Category:Financial crises]]
[[Category:Terms and concepts of the 2000s United States housing bubble]]
[[Category:United States proposed federal legislation]]
[[Category:Electric vehicle incentives]]
[[Category:Plug-in hybrid vehicles]]
[[Category:Electric vehicle legislation]]
[[Category:Obama Administration]]
[[Category:111th United States Congress]]

[[de:US-Konjunkturprogramm 2009]]
[[fr:Plan de relance économique des États-Unis de 2009]]
[[ka:აშშ-ის ეკონომიკის სტიმულირების გეგმა 2009]]

Revision as of 03:42, 18 February 2009

Let's go ECONOMY LETS GO!

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