U.S. of Congress House Bill “The American Recovery and Reinvestment
Act of 2009”

Highlights:

·       Bill’s purpose: job preservation and creation (3 to 4 million
jobs), infrastructure investment, energy efficiency and science,
assistance to the unemployed, and State and local fiscal stabilization,
for the fiscal year ending September 30, 2009, and for other purposes.

·       $275 billion in economic recovery tax cuts and $550 billion in
carefully targeted priority investments with unprecedented
accountability measures built in, for a total of $825 billion in
economic stimulus funds.

·       Bill contains a historic level of transparency, oversight and
accountability that will help guarantee taxpayer dollars are spent
wisely and Americans can see results for their investment.

Ø       In many instances funds are distributed through existing
formulas
Ø       How funds are spent, including why an activity should be funded
with recovery dollars, will be posted on a special website created by
the President.  Program managers must be identified.
Ø       A Recovery Act Accountability and Transparency Board will review
management of recovery dollars and provide early warning signs.
Ø       The Government Accountability Office and the Inspectors General
will provide special review of recovery funding.
Ø       Federal and state whistleblowers who report fraud and abuse are
protected.
Ø       There are no earmarks in this bill.

·       Clean, Efficient, American Energy: to put people back to work
today and reduce our dependence on foreign oil tomorrow

Ø       $32 billion to transform the nation’s energy transmission,
distribution, and production systems.
Ø       $16 billion to repair public housing and make key energy
efficient retrofits.
Ø       $6 billion to weatherize modest-income homes.

·       Transform our Economy with Science and Technology: 

Ø       $10 billion for science facilities, research, and
instrumentation.
Ø       $6 billion to expand broadband internet access so businesses in
rural and other underserved areas can link up to the global economy.



·       Modernize Roads, Bridges, Transit and Waterways: 

Ø       $30 billion in transportation/highway construction.
Ø       $31 billion to modernize federal and other public infrastructure
with investments that lead to long-term energy cost savings.
Ø       $19 billion for clean water, flood control, and environmental
restoration investments.
Ø       $10 billion for transit and rail to reduce traffic congestion
and gas consumption.

·       Education for the 21st Century: to enable more children to learn
in 21st century classrooms, labs, and libraries to help our kids compete
with any worker in the world

Ø       $41 billion to local school districts through Title I ($13
billion), IDEA ($13 billion), a new School Modernization and Repair
Program ($14 billion), and the Education Technology program ($1
billion).
Ø       $79 billion in state fiscal relief to prevent cutbacks to key
services, including $39 billion to federal formulas, $15 billion to
states for as bonus grants as a reward for meeting key performance
measures, and $25 billion to states for other high priority needs such
as public safety and other critical services, which may include
education.
Ø       $15.6 billion to increase the PELL grant by $500.
Ø       $6 billion for higher education modernization.

·       Lower Healthcare Costs:  to update and computerize health care
system to cut red tape, prevent medical mistakes, and help reduce health
care costs by billions of dollars each year.

Ø       $2 billion in this bill, and $20 billion overall, for health
information technology.
Ø       $4.1 billion to provide for preventative care and to evaluate
the most effective health care treatments.

·       Help Workers Hurt by the Economy: high unemployment and rising
costs have outpaced American’s paychecks.  The bill helps struggling
families make ends meet by providing $20 billion to increase the food
stamp benefit by over 13%, in order to help defray rising food costs.

·       Save Public Sector Jobs and Protect Vital Services:  fiscal
relief is provided to states, so that they can continue to employ
teachers, firefighters and police officers and provide vital services
without having to unnecessarily raise middle class taxes.  The bill
provides $4 billion for state and local law enforcement.

·       Funds provided in this bill must be used for well-vetted
investments that can begin in a timely manner.  Provisions in the bill
require timely funding awards.  Formula grants must be allocated within
thirty days and discretionary grants must be allocated within ninety
days, with the period lengthened by thirty days for new programs.  The
bill provides for the redistribution of funds not timely obligated
within one year for specific programs.  The bill also provides for .5
percent of each appropriation to go for administration, management and
oversight.  For strong oversight, nearly $210 million is provided for
the Offices of Inspectors General and $25 million for the Government
Accountability Office.  No funding provided in this bill may be used to
fund casinos, gaming institutions, aquariums, zoos, golf courses or
swimming pools (emphasis added).  

·       Mark Zandi of Moody’s Ecnomy.com projects that a $750 billion
recovery package along the lines being proposed would raise GDP by $2.9
trillion over the next four years—about four times as much as the
initial cost.  He projects that GDP will be about $1 trillion higher in
both 2011 and 2012.


·       




Prepared by the Fiscal Analysis Division, January 16, 2009

ICJ:I:\CORLEY\American Recovery and Reinvestment Act of 2009.doc





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