The American Recovery and Reinvestment Act (ARRA) was President Obama's signature piece of legislation when he came into office. The legislation was an $840 billion spending package that provided a number of tax cuts to idividuals and companies, funding to states to make up budget short falls, and funding to numerous agencies for infrastructure spending.
The second tab shows numerous speeches made by President Obama noting the need for the Stimulus package and the content of that proposed legislation. Among these goals is the creation of 3 million news jobs - 80% in the private sector, doubling renewable energy production, rebuilding our crumbling roads, bridges, and schools, updating and computerizing the health care system, building 21st century classrooms, and providing direct tax relief to 95% of American workers.
The third tab shows the fact sheets put out by the White House concerning how the legislation would affect infrastructure, health care, education, and energy. The fact sheets lay out the intended distribution of the funds in the ARRA and the planned effects of those funds. The summary fact sheet includes:
- Create or save 3.5 million jobs over the next two years.
- Provide nearly 40 percent of the package in direct relief to working and middle class families: Making Work Pay Tax Credit
- Double renewable energy generating capacity over three years.
- Creates a Clean Energy Finance Authority and Renewable Tax Credits that together will leverage an additional $100 billion in private investment in the renewables sector.
- Make a $150 billion investment in our nation’s infrastructure
- Protect health care coverage for millions of Americans during this recession: Temporary increase the Federal Medical Assistance Percentage
The fourth tab shows predictions that were made by the White House concerning how much was to be spent on the stimulus and how much this spending would effect unemployment. The initial plans detailed a $787 billion spending bill that allocated 27% of that spending to tax relief, 34% to direct aid to states, and 39% to discretionaly, infrastructure spending.
The fifth tab shows how the stimulus funds have been allocated since the program's initiation. Recovery.gov data displays spending data in three categories that are different from the planned categories. These new categories include the previous tax relief with the addition of a category called "contracts, grants, and loans" and one for entitlement spending. While the data shows that $717 billion has been spent, it also shows that the new total is $840 billion.
Weekly reports available from Recovery.gov show the amount of money allocated to each department and the amount of money paid out to each department. Taking those weekly reports, a chart was made of the money allocated and paid out weekly as shown below. This chart is up to date as of September 23, 2011. As of that date, the total amount allocated to departments was $492 billion and the total amount paid out was $419 billion. That tab also shows the total allocation of funds over time for each agency.
Tabs six, seven, and eight provide a full listing of the programs and specific funding items as classified by Recovery.org under the monikers of tax benefits, contracts, grants, and loans, and entitlements. The taxes page also explains the specific tax breaks that are provided under the legislation.
Those specific funding items were pulled out and reclassified into areas more in line with the original purposes of the ARRA, such as funding to states and infrastructure spending. The full table can be seen here. What was found was that only 11% of the funding allocated as of September 23, 2011 had gone to infrastructure spending, while 17% had gone to spending on welfare and unemployment programs.
Timeline of the ARRA
The total amount of time taken to move the American Recovery and Reinvestment Act from introduction into the House to signing into law was 23 days with just 19 of those days required to move the bill through Congress. The major actions include the introduction of the bill, its passage in the House and Senate, the passage of the combined versions in the House and Senate, and the signing of the bill into law.
|Jan 26, 2009||Introduced in the House|
|Jan 28, 2009||Passed the House|
|Feb 10, 2009||Passed the Senate|
|Feb 12, 2009||Conference report filed|
|Feb 13, 2009||Conference report passed Senate|
|Feb 13, 2009||Conference report passed House|
|Feb 17, 2009||Signed into law by President Obama|
Passage of Legislation
The stimulus bill passed the House and Senate along mostly partisan lines in January and February of 2009. Three Republican senators joined the Democrats and 11 Democrats joined the Republicans in voting against the bill in the House.
|American Recovery and Reinvestment Act||Official Summary||Bill Text|
Weekly Address as President-Elect
On January 2, 2009 President-Elect Obama gave a weekly web address to note the need for the American Recovery and Reinvestment Act. In that address, President-Elect Obama stressed the need to act "swiftly and boldly" to save the economy and laid out 6 objectives for the plan.
- create 3 million news jobs - 80% in the private sector
- double renewable energy production and renovate old buildings
- rebuilding our crumbling roads, bridges, and schools
- update and computerize health care system
- build 21st century classrooms
- direct tax relief for 95% of American workers
George Mason University Speech
On January 8, 2009 President-Elect Obama spoke at George Mason University and discussed the American Recovery and Reinvestment Act. He emphasized in that speech the need to act quickly to avert a depression.
I don't believe that it's too late to change course, but it will be if we don't take dramatic action as soon as possible. If nothing is done, this recession could linger for years. The unemployment rate could reach double-digits.
If we act with the urgency and seriousness that this moment requires, I know that we can do it again. That is why I have moved quickly to work with my economic team and leaders of both parties to propose an American Recovery and Reinvestment plan that will immediately jump start investment and long term growth.
To build an economy that can lead this future, we will begin to rebuild America. Yes we will put people back to work repairing crumbling roads, bridges, and schools by eliminating the backlog of well planned, worthy, and needed infrastructure projects.
First Presidential Weekly Address
On January 24, 2009, President Obama used his first weekly address to tout the stimulus plan. The White House issued a statement noting the address.
Signing of the Stimulus into Law
On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act into Law. He spoke about the law prior to signing it in a short press conference.
The White House puts out facts sheets detaiing key aspects of most legislation. For the American Recovery and Reinvestment Act, numerous facts were put out with an overview one, one for infrastructure, one for energy, and one for education.
THE WHITE HOUSE
February 17, 2009
The American Reinvestment and Recovery Act
Jumpstarting our Economy and Investing in Our Future
The American economy is in the midst of a crisis unlike any we have seen in our lifetime. The economy lost 3.6 million jobs in the last 13 months, the biggest job loss since the end of World War II. Many experts believe unemployment could reach double digits if no action is taken. In light of this historic economic weakness, President Obama is signing the American Recovery and Reinvestment Act, a nationwide effort to create jobs and transform our economy to compete in the 21st century. The legislation represents the most ambitious effort to stimulate the economy in our nation’s history. It will:
- Create or save 3.5 million jobs over the next two years. Based on an analysis by the Council of Economic Advisers, the legislation will meet the goal of creating or saving at least 3.5 million jobs over the next two years. Jobs created will be in a range of industries from clean energy to health care, with over 90% in the private sector.
- Provide nearly 40 percent of the package in direct relief to working and middle class families: The package includes a Making Work Pay tax credit for 95% of workers and their families. In addition, the package provides direct relief for families by expanding unemployment insurance and offering payments to Social Security beneficiaries and veterans. The vast majority of the remainder of the package is provided in state fiscal relief and investments that also benefit working families.
- Double renewable energy generating capacity over three years. It took 30 years to reach current levels of renewable energy production. This package will double that level over the next three years – enough to power 6 million American homes.
- Creates a Clean Energy Finance Authority and Renewable Tax Credits that together will leverage an additional $100 billion in private investment in the renewables sector. The finance authority will provide loan guarantees and other financial support to help ease credit constraints for renewable energy investors and catalyze new private sector investment.
- Make a $150 billion investment in our nation’s infrastructure – the largest investment since the interstate highway system in the 1950s: It includes historic investments in public transit and high speed rail, an unprecedented effort to upgrade or nation’s electricity grid, and a new initiative to expand broadband coverage throughout the nation.
- Protect health care coverage for millions of Americans during this recession. The legislation provides a temporary increase the Federal Medical Assistance Percentage so that no state has to cut eligibility for Medicaid and SCHIP because of budget shortfalls. This investment will protect roughly 20 million people whose eligibility might otherwise be at risk. It will also generate considerable state economic activity, jobs and wages.
- Enact the most significant expansion in tax cuts for low- and moderate-income households ever: Under current law, a family of four earning the minimum wage currently lives below the poverty line. Under the plan, that family will be lifted out of poverty by a combination of an $800 Making Work Pay tax credit and $1,200 from an expanded child tax credit. All told, more than 2 million people would be lifted out of poverty by the plan.
THE WHITE HOUSE
February 17, 2009
American Recovery and Reinvestment Act:
The Largest Investment in Education in Our Nation’s History – to Prevent Teacher Layoffs, Make Key Education Improvements and Help Make College Affordable
- Preventing teacher layoffs and education cuts in every state. A recent study by the University of Washington found that states are likely to cut nearly 15 percent of their education spending over the next three years, which could eliminate 574,000 education jobs. The ARRP will help prevent devastating cuts to education by providing $53.6 billion to states and school districts to prevent layoffs and cuts in critical education services and $25 billion in support for educating at risk students and those with special needs.
- Investing in Early Head Start and Head Start – programs that work. Doubling the number of children in Early Head Start and expanding Head Start. The ARRP will provide $1.1 billion for Early Head Start and $1 billion for Head Start, thereby providing services for approximately 120,000 additional infants and children over two years. Taken together, investments in Head Start and Early Head Start are estimated to create at least 15,000 new jobs, many of which are held by low-income women.
- Providing enough funding to support quality child care for an additional 150,000 children and keep 200,000 children from being dropped from care. The plan’s $2 billion investment in the Child Care Development Block Grant will help an increasing number of families during the downturn who are struggling to afford care and allow parents to hold onto their jobs.
- Providing a new higher education tax cut to nearly 4 million students. Helping people afford college is particularly important during an economic downturn. When people are unable to find work one of the best investments we can make is to improve the skills of the workforce. The ARRP will create a new $2,500 American Opportunity Tax Credit that is partially refundable. As a result, the nearly one-fifth of high school seniors who receive no tax credit under the current system will receive a tax cut to make college affordable for the first time.
- Increasing college affordability for more 7 million students by funding the shortfall in Pell Grants and increasing the maximum award level by $500. Demand for the Pell Grant has surged during the economic downturn. The ARRP will ensure the Pell Grant is available to those who need it and make the award more generous.
- Investing in data systems to improve student achievement. The ARRP will enable States and school districts to put in place comprehensive data systems that provide teachers, parents, and students with the useful information they need to support student achievement and growth. These critical, one-time investments will enable policymakers to continually measure the progress of students, schools, districts, and States in meeting high standards.
- Maintaining key education reforms during the economic downturn. The AARP ensures that States, districts, and schools can continue pursuing important education reforms enacted by Congress that have effectively closed the student achievement gap. The plan will ensure that there are high-quality teachers in the classroom, especially in low-income and minority communities and for high-need subject areas such as science and math. The plan will support compensation and incentive systems that fairly reward educators for their performance. And the plan will invest in school systems and organizations with track records of success to expand their work and share what’s working with educators and policymakers across the nation.
THE WHITE HOUSE
February 17, 2009
American Recovery and Reinvestment Act:
Moving America Toward a Clean Energy Future
Our nation’s current energy system is failing to provide the clean and secure energy needed to power a 21st century economy. It is imperative that we accelerate the development and deployment of clean and renewable energy. The Clean Energy Finance Authority (CEFA) is designed to coordinate, amplify and elevate our nation’s investment in a clean energy future. Renewable power has grown dramatically over the past several years. Unfortunately, the current credit crisis has brought this dynamic progress to a halt. The CEFA programs included in the Recovery Plan will revive the renewable industry and double the amount of renewable energy produced over the next three years. Collectively, the funding is expected to leverage nearly $100 billion in clean energy projects.
BUILDING A BIGGER, BETTER, SMARTER GRID
More than $11 billion is included in the recovery play to create a bigger, better, smarter electric grid. Combined, these investments will allow for: integration and use of greater amounts of renewable energy; increased utilization of innovative efficiency technologies; and a reduction in the electric congestion that costs ratepayers billions of dollars each year.
We know that the existing electricity grid today is insufficient and outdated. In order to bring significant amounts of renewable energy online, tens of thousands of miles of new, high voltage national transmission is necessary. For example, North Dakota – a state with significant wind energy potential – cannot carry the energy to the population centers that need the electricity without a new transmission superhighway. While this new nationwide “superhighway” will require long-term policy changes and years of planning, much work can begin today. And the Recovery Plan will jumpstart that work through key investments:
- The upfront investments and reforms in modernizing our nation’s electricity grid will result in more than 3,000 miles of new or modernized transmission lines.
- The Plan will also create a smarter grid and deploy 40 million “Smart Meters” in American homes, upgrading transmission and distribution technologies that have not significantly changed in a half century. A smarter way to deliver electricity to consumers can lower utility bills, reduce power outages and enable more cutting edge renewable and electric vehicle technologies.
- While permitting thousands of miles of new high voltage lines will take time, a $100 million workforce training program can overcome a key obstacle: a projected a shortage of lineworkers as the aging transmission workforce enters retirement. Workers who train today will be prepared to construct thousands of new miles in the future.
INCREASING ENERGY EFFICIENCY
Energy efficiency, by many measures, is our fastest, cheapest and cleanest opportunity to address our energy challenges. From cars and homes to factories and offices, we know how to cost effectively deliver vast quantities of energy savings today. The American Reinvestment and Recovery Plan includes a number of measures to improve energy efficiency across the US economy by:
- Reducing Federal Government Energy Use. The federal government is the largest energy consumer in the world. Making substantial investments to reduce federal energy consumption through energy efficiency upgrades to federal buildings can spur job creation while slashing the federal government’s energy bill by 25%.
- Increasing Low-Income Weatherization Funding. Across the nation, millions of working families spend a significant portion of their income to run their furnaces, air conditioners and keep the lights on. By upgrading a home’s furnace, sealing leaky ducts, fixing windows, and adding insulation we can cut energy bills by up to $350 per year. And by adding energy efficient appliances and lighting the savings are even greater. The critical funding in the recovery package will help weatherize over 1 million homes.
- Providing Energy Efficiency Grants to States. Many states and local governments have created dedicated clean energy programs and are implementing effective strategies to support significant new project and market deployment. Facing budget shortfalls, however, states and local governments now lack sufficient financial resources to tap the full potential of clean energy development and deployment. This situation is exacerbated with private sector financing drying up as a result of the recent credit crisis. With funding from the recovery plan, states and local governments will be able to quickly accelerate clean energy development and create jobs.
GREEN JOBS TRAINING
Amidst the challenges facing our national and global economies, there is a critical opportunity to develop the industries and skilled workforce needed to support a transition to a clean energy economy. Both traditional and clean technology energy companies regularly cite their inability to hire and retain trained workers. The American Recovery and Reinvestment Plan will create a sustainable, public program that leverages significant private labor-management funds and provides quality workforce training linked to good jobs that are created by federal renewable energy and energy efficiency initiatives. Creating programs that quickly and effectively train workers is essential to economic and programmatic goals of the entire stimulus effort
THE WHITE HOUSE
February 17, 2009
American Recovery and Reinvestment Act:
Providing Health Care to Those in Need While Making a Down Payment on Health Reforms that Will Save Billions of Dollars and Countless Lives
As millions of people have lost their jobs, millions have lost their health insurance. Those that remain covered are paying more for less. And unrelenting health care costs are burdening business, state governments, and our economy. The American Reinvestment and Recovery Act will prevent health coverage loss and stabilize the system. It will make key investments now that will lower health spending in the long run. It is part of the Presidents’ commitment to make health care affordable for all Americans.
- Accelerating Adoption of Health IT Systems to Modernize the Health Care System, Save Billions of Dollars, Reduce Medical Errors and Improve Quality. The American Reinvestment and Recovery Act will modernize the health care system by catalyzing the adoption of health information technology by 2014. The Congressional Budget Office estimates that the bill reduces health costs for the federal government by over $12 billion over 10 years.
- Protecting Health Care Coverage for Millions of Americans During This Recession. The legislation provides $87 billion in the form of a temporary increase in the Federal Medical Assistance Percentage so that no state has to cut eligibility for Medicaid and SCHIP because of budget shortfalls. This investment will protect roughly 20 million people whose eligibility might otherwise be at risk. It will also generate considerable state economic activity, jobs and wages.
- Providing Health Care Coverage for 7 Million Americans. The bill will provide Americans who lose their jobs a new 65% tax credit to keep their health insurance through COBRA. This provision will help provide coverage for 7 million Americans.
- Investing in Evidence-Based Prevention for Americans. The bill will provide $1 billion for proven clinical preventive services and community-based prevention programs. Because more than half of Americans—156 million—go without the flu vaccine every year, this plan makes a significant investment in immunizations to remove the cost barrier. Further, given that 1 in 3 adults have a chronic disease, this plan tackles obesity, smoking and other health risks by expanding prevention programs that operate in communities across the nation.
- Strengthening the Health Workforce. The President believes that a strong health workforce, including doctors, nurses, community health workers and public health practitioners, are the lynchpin to an effective health care system. The bill provides $500 million to support programs like the National Health Services Corps which place providers in underserved communities. Further, it will fund existing workforce programs (Title VII and VIII) which are critical for the education and training of the next generation of doctors and nurses.
- National Institutes of Health. The bill invests $10 billion in the National Institutes of Health. This funding will end the backlog of valid research projects that have been on hold due to inadequate budgets. According to Research America, this investment could create 70,000 jobs and stimulate the economy of every state because 90 percent of NIH funding is distributed to colleges, universities and research institutions across the country.
- Comparative Effectiveness Research. The bill invests $1.1 billion in comparative effectiveness research. This provides patients and providers with better information on the relative merits of different treatment options.
- Community Health Centers. The bill invests $2 billion in community health centers to support renovations and repairs, investments in health information technology, and critically needed health care services.
- Indian Health Service. The bill provides $500 million to modernize health clinics and hospitals, support investment in health information technology, and allow for contract health services for Native Americans and Alaskan Natives.
- Health and Human Services IT Security. The bill provides $50 million to the Department of Health and Human Services for information technology security.
THE WHITE HOUSE
February 17, 2009
American Recovery and Reinvestment Act:
A $150 Billion Investment in Our Nation’s Infrastructure – The Largest New Investment Since the Construction of the Interstate Highway System
The American Recovery and Reinvestment Act makes a long-overdue, historic investment in our national infrastructure – including our roads, bridges, public transit, housing and broadband – to save or create nearly 400,000 jobs for American workers today and power enhanced economic growth for the decades to come. With the recent report that our nation’s infrastructure earns a “D” grade for its poor and decaying condition, it is clear that we can no longer wait to take bold action to protect our families, businesses and communities. The Act meets this challenge by ensuring that all parts of the country can benefit from this bold effort by ensuring that all states receive funding; localities have the ability to use funds for their highest-need projects; and rural areas receive much-needed funds to address the backlog of clean water and infrastructure projects.
The Act includes $150 billion in new federal infrastructure funding that reflect the President’s belief that we can only strengthen our economy by investing in local communities:
- Investing Over $17 Billion in Public Transit and High-Speed Rail to Reduce Our Dependence on Foreign Oil: The American Recovery and Reinvestment Act makes an unprecedented investment in public transit and innovative high-speed rail initiatives to bring new, efficient transportation alternatives to millions of Americans across the country and finally start breaking the grip of foreign oil on our nation’s economy.
- Safeguarding the Roads, Bridges, Dams, Ports, Rail and Water Systems Our Families Use Everyday with a Historic $40 Billion, Two-Year Investment: As our national infrastructure has crumbled, not only has our infrastructure become more unsafe for everyday use, but it has also become more vulnerable to attack. The Recovery and Reinvestment Act addresses this challenge head-on by focusing on ready-to-go repairs and maintenance that will make our infrastructure systems more resilient and secure, including supporting over 2,000 water infrastructure projects and enhancing the security of 90 major ports.
- Expanding Broadband Access throughout America: America once led the world in broadband access, but for years has fallen further and further behind other nations in our technology capacity, thereby depriving American citizens the necessary tools for success in the global economy. The Recovery and Reinvestment Act takes steps to ensure that nearly every community in America – urban, suburban and rural – has high-speed broadband access.
- Addressing the Effect of Foreclosures in Our Hardest-Hit Communities: As countless communities have seen their blocks consumed by more and more foreclosure signs, mayors and governors have not had the resources they need to address this growing crisis. The American Recovery and Reinvestment Act helps communities rebuild by providing an infusion of over $10 billion to help expand the availability of quality affordable housing and support communities seeking to reduce the effects of foreclosures in their neighborhoods.
Prior to President Obama signing the ARRA into law, the Congressional Budget Office scored the plan and noted that it consisted of three main types of spending; tax relief, direct aid to states, and discretionary spending for stimulative effect. The total cost of the plan was estimated at $787 Billion.
Of the two types of spending, Direct Aid and Discretionary Spending, the CBO looked at how much was allocated in the budget each year and how much was expected to be spent each year. What was found was that the Direct Aid was to go mainly to fill in needed areas of budgets for programs already in existence and it was spent as soon as possible. The Discretionary Spending was allocated in the first two budgets, but was not actually spent until years later. The charts below show the cumulative amount of money allocated and spent for the Direct Aid, and Discretionary Spending Programs. Note that the amount is cumulative so the 2010 numbers are money spent in all previous years plus that year. The final chart shows the cumulative amount added to the debt to reach the $787 Billion total.
On January 10, 2009 President-Elect Obama's Chief Economic Advisor Christina Romer issued a paper titled "The Job Impact of the American Recovery and Reinvestment Act." In this document Mrs Romer predicted the unemployment rate if the stimulus was passed and if the ARRA failed to pass and displayed those two numbers in the lone chart in the paper. That chart clearly showed that if the stimulus passed, unemployment would not pass 8%. In reality, the unemployment numbers were worse than those Mrs Romer predicted without the ARRA passing. The total number of jobs to be created by the fourth quarter of 2010 was 3,675,000. The chart below is a reproduction of the predicted unemployment rates if the stimulus did and didn't pass, along with the actual rate of unemployment.
In that same document Mrs. Romer noted that the bulk of the stimulative funds were designed to be spent in 2010 and 2011, and that only the funds for the vulnerable would be spent immediately:
"The different components of the stimulus package also differ in terms of the timing of the jobs they will create, and therefore serve different purposes in terms of cushioning the downturn and fostering recovery. Because it takes time to carry out new spending programs authorized by legislation, we expect the jobs created by spending on infrastructure, education, health, and energy to be concentrated in 2010 and 2011. At the other extreme are funds to protect the most vulnerable, which are generally spent promptly, and tax incentives for businesses to invest quickly. State fiscal relief and broad-based tax cuts fall in between: funds for these programs can be disbursed quickly, but there can be a delay before the main response of spending."
Official Money Allocation
The cost of the Stimulus plan has grown since it's passage and now stands at $840 billion to be allocated. Tracking the allocation of that money is not easy as no direct comparison of planned versus actual allocation is available. Although the stimulus predictions tracked money by tax benefits, aid to states, and infrastructure spending, Recovery.gov tracks the money in three different categories: tax benefits; contracts, grants, and loans; and entitlements. As of October 2011, the total amount of money allocated according to Recovery.org was $717 billion of the $840 billion total.
The chart below shows the allocation of funds from the three main categories to the individual classifications within those categories. The next three tabs, taxes, contracts, and entitlements, break down these costs even further and explain the individual programs that make up these tax credits and other items.
Unofficial Money Allocation
The next few tabs hold the data for spending on various projects as classified by Recovery.org. Taking that data and reclassifying it into sections more in alignment with original classifications yields the allocation of funds as seen below. That table showing the full classification of items can be found here.
Some money, such as $16 billion to Pell grants does not easily fit into the categories below and is placed into the remaining funds category. The reclassification shows that only 11% of the $717 billion spent to date can be truly called infrastructure spending. Much of what is currently classified under the contracts, grants, and loans is really funding to states for teacher rehiiring, building projects for public housing, and unemployment assistance.
Spending over Time
Weekly reports available from Recovery.gov show the amount of money allocated to each department and the amount of money paid out to each department. Taking those weekly reports, a chart can be made of the money allocated and paid out weekly as shown below. This chart is up to date as of September 23, 2011. As of that date, the total amount allocated to departments was $492 billion and the total amount paid out was $419 billion
Quarterly reports are available from Recovery.gov that show the total amount of money awarded and spent. The chart below shows the cumulative amount of that money awarded and dispersed to date. The second chart compares the amount of funds projected to be allocated in the budget and spent each year and the amount which has actually been spent. It can be seen that by the end of 2010, the amount of money spent is less than projected and of the money spent, roughly half of it has been received to date. These charts do not include the tax reductions.
The recovery.org website notes the funds allocated to and available to numerous agencies. The table below shows the amount available to the agencies shown and the amount dispersed at the date shown.
|Agency||Report Date||Total Available||Total Paid Out|
|Agency for International Development||Sept 23, 2011||$37,992,140||$36,860,401|
|Corporation for National and Community Service||Sept 23, 2011||$184,163,340||$167,522,238|
|Department of Agriculture||Sept 23, 2011||$35,164,036,929||$31,123,355,607|
|Department of Commerce||Sept 23, 2011||$6,780,375,444||$2,875,296,513|
|Department of Defense - Military||Sept 23, 2011||$6,866,390,159||$5,196,368,295|
|Department of Education||Sept 23, 2011||$97,293,891,535||$86,673,198,995|
|Department of Energy||Sept 23, 2011||$34,982,075,881||$19,385,522,019|
|Department of Health and Human Services||Sept 23, 2011||$118,372,854,318||$112,320,475,042|
|Department of Homeland Security||Sept 23, 2011||$2,231,401,127||$1,089,142,899|
|Department of Housing and Urban Development||Sept 23, 2011||$13,548,882,295||$10,927,566,800|
|Department of Justice||Sept 23, 2011||$3,991,725,564||$2,878,785,562|
|Department of Labor||Sept 23, 2011||$67,474,267,386||$65,404,879,778|
|Department of State||Sept 23, 2011||$399,611,798||$339,609,407|
|Department of Interior||Sept 23, 2011||$3,200,750,411||$2,530,234,717|
|Department of Treasury||Sept 23, 2011||$15,007,550,993||$14,329,825,684|
|Department of Transportion||Sept 23, 2011||$47,343,729,855||$31,634,922,569|
|Department of Veteran's Affairs||Sept 23, 2011||$1,818,238,649||$1,519,716,622|
|Environment Protection Agency||Sept 23, 2011||$7,154,629,384||$6,264,483,178|
|Federal Communications Commission||Sept 23, 2011||$98,004,562||$94,696,028|
|General Services Administration||Sept 23, 2011||$6,451,081,336||$3,296,208,248|
|NASA||Sept 23, 2011||$1,046,910,794||$987,338,311|
|National Endowment for the Arts||Sept 23, 2011||$49,982,300||$49,921,643|
|National Science Foundation||Sept 23, 2011||$2,997,114,122||$1,378,700,315|
|Railroad Retirement Fund||Sept 23, 2011||$141,273,066||$141,273,066|
|Small Business Administration||Sept 23, 2011||$644,074,276||$608,111,227|
|Smithsonian Institution||Sept 23, 2011||$25,000,000||$25,000,000|
|Social Security Administration||Sept 23, 2011||$14,140,825,798||$13,745,547,965|
|US Army Corps of Engineers||Sept 23, 2011||$4,818,397,625||$3,910,675,468|
Allocation of Funds over Time
Stimulus Tax Breaks
As can be seen in the previous tab, tax breaks make up over 40% of the total stimulus spending. Tax cuts to individuals make up 46% of those tax breaks and the Making Work Pay tax cut makes up an additional 35%. This page describes some of the biggest tax breaks and then gives a full breakdown of the amount of money allocated to each tax break.
Overall Allocation of Tax Benefits
Individual Tax Credits
Before listing exactly how much money was allocated to each tax benefit, the largets of those benefits are described. The individual tax benefits consisted of the largest amount of money allocated to any single program and had seven major components: AMT exemptions, American Opportunity Tax Credit, the Child Tax Credit, the First Time Homebuyer Tax Credit, unemployment insurance benefits, and the Earned Income Tax Credit.
Congress typically increases the AMT amount every year to address a flaw in that tax code that does not adjust for inflation. In 2008, this was accomplished in the ARRA. This is by far the largest tax break, amounting to more than twice the next highest individual tax break. The 2008 and 2009 brackets are shown below to demonstrate the change in AMT rates.
|Married Filing Jointly ||Single or Head of Household||AMT Income||QD & LTCG|
|$69,950||$46,200||0%||0% / 15%|
|Married Filing Jointly ||Single or Head of Household||AMT Income||QD & LTCG|
|0$ - $70,950||$0 – $46,700||0%||0% / 15%|
|$70,951 – $150,000||$46,701 – $112,500||26%||15%|
|$150,001 – $226,760||$112,501 – $199,860||32.5%||21.5%|
|$226,761 – $433,800||$199,861 – $299,300||35%||22%|
|$433,801 or more||$299,301 or more||28%||15%|
The legislation also extended a special rule that had been in place from 2000-2008 that extended AMT exemptions to nonrefundable personal credits. This was done in sections 1011 and 1012 of the legislation.
American Opportunity Tax Credit
The American Opportunity tax credit act increased the Hope Scholarship Credit to 100 percent qualified tuition, fees and course materials paid by the taxpayer during the taxable year not to exceed $2,000, plus 25 percent of the next $2000 in qualified tuition, fees and course materials. The total credit does not exceed $2500 and is 40% refundable. The tax credit is subject to a phase-out for taxpayers with adjusted gross income in excess of $80,000 ($160,000 for married couples filing jointly) and was later extended for 2011 and 2012. This was handled in section 1004.
Child Tax Credit
In Section 1003, the ARRA lowered the dollar amount that someone had to make to obtain a tax credit for a dependent child from about $12,500 to $3,000.
First Time Homebuyer Credit
Section 1006 extended a tax credit for first time homebuyers. The credit was set to expire on July 1, 2009 but was extended to December 1, 2009. It was also increased from $7,500 to $8,000. The credit was given to people purchasing their first home.
Section 1007 of the Stimulus act made the first $2,400 of unemploment insurance tax-free.
Earned Income Tax Credit
Section 1002 made changes to the Earned Income Tax Credit for 2009 and 2010. Specifically, the law was changed so that a person with 3 or more qualifying children would receive a credit percentage of 45%. The law also made adjustments to levels that reduced the marriage penalty for this credit.
Making Work Pay
Section 1001 created the Making Work Pay provision of the American Recovery and Reinvestment Act of 2009. "Making Work Pay" provided a refundable tax credit of up to 6.2 percent of earned income of the taxpayer or $400 for working individuals and up to $800 for married taxpayers filing joint returns.
Full Allocation of Tax Benefits
|Individual Tax Credits||$136.4B|
|Increased Alternative Minimum Tax Exemption||$64.7B|
|American Opportunity Tax Credit||$25.7B|
|Child Tax Credit||$18.4B|
|First Time Homebuyer Credit||$10.7B|
|Exclude up to $2,400 of unemployment insurance benefits from gross income for taxable year 2009||$6.3B|
|Earned Income Tax Credit||$5.1B|
|Extension of Alternative Minimum Tax Relief for Nonrefundable Personal Credits||$4.4B|
|Deduction on Sales and Excise Taxes for Certain Motor Vehicles||$1.1B|
|Computer Technology and Equipment Allowed as a Higher Education Expense||$0|
|Making Work Pay||$104.1B|
|Making Work Pay||$104.1B|
|Tax Incentives for Businesses||$36.9B|
|Special Allowance for Certain Properties Acquired in 2009||$26.4B|
|Deferred Income from Cancellation of Certain Indebtedness||$10.2B|
|5-Year Carryback of Operating Losses of Small Businesses||$790M|
|Temporary Increase in Limitations on Expensing of Certain Depreciable Business Assets||$730M|
|Temporarily Reduced the Recognition Period for Built-in Gains Tax||$240M|
|Incentives to Hire Unemployed Veterans and 16 to 24 Year Old||$230M|
|Changed Certain Ownerships for Purposes of Limitations on Net Operating Loss Carry Forwards and Certain Built-In Losses||$9M|
|Decreased Estimated Tax Payments for Certain Small Businesses||$0|
|Modifies Rules for Original Issue Discount on Certain High-Yield Obligations||$0|
|Clarified Regulations Related to Limitations on Certain Built-in Losses Following an Ownership Change||-$1.7B|
|Residential Energy Credit||$10.4B|
|Residential Credit for Alternative Energy||$420M|
|Credit for Electricity Produced from Certain Renewable Resources||$270M|
|Extension of Commuter Transit Benefits / Transit Passes||$130M|
|Business Credits for Renewable Energy Properties||$100M|
|Electric Motor Vehicles Credit||$90M|
|Increased Credit for Alternative Fuel Vehicles Refueling Properties||$43M|
|Increased Limitation on Energy Conservation Bonds||$11M|
|Increased Limitation on Clean Renewable Energy Bonds||$1M|
|Investment Credit or Productions Credit||$0|
|Carbon Dioxide Used as a Tertiary Injectant||$0|
|Renewable Energy Grants vs Energy Investment Tax Credit||-$1.2B|
|Manufacturing & Economic Recovery, Infrastructure Refinancing, Other||$7.1B |
|Delayed Application of Withholding Tax on Government Contractors||$4.1B|
|Build America Bonds||$850M|
|Credit for Investment in Advanced Energy Facilities||$630M|
|Exception for Tax-Exempt Interest Expense of Financial Institutions||$450M|
|Special Tax Credit for Certain Government Retirees||$350M|
|Qualified School Construction Bonds||$240M|
|Extension of Unemployment Compensation||$170M|
|Health Coverage Improvement||$150M|
|Increase in New Markets Tax Credit||$90M|
|Recovery Zone Bonds||$90M|
|Prohibited Collection of Certain Payments Made Under the Continued Dumping and Subsidy Offset Act of 2000||$75M|
|Modified Small-Issuer Exception to Tax Exempt Interest Expense Allocation Rules for Financial Institutions||$28M|
|Tribal Economic Development Bonds||$28M|
|Temporarily Expanded Industrial-Development Bonds to Facilities Manufacturing Intangible Properties||$15M|
|Extension and Expansion of Qualified Zone Academy Bonds||$12M|
|Temporarily Modified Alternative Minimum Tax Limitations on Tax-Exempt Bonds||$7M|
|Grants to States for Low-Income Housing Projects in Lieu of Low-Income Housing Credit Allocations||$3M|
|Modified High Speed Intercity Rail Facility Bonds||$1M|
|Regulated Investment Companies Allowed to Pass-Thru Tax Credit Bond Credits||$0|
|Extension of Trade Adjustment Assistance to Service Sector and Public Agency Workers; Shifts in Production||$0|
|Low-Income Housing Credit and Low-Income Housing Grants||-$210M|
Allocation of Contracts, Grants, and Loans
|Department of Education-Office of Elementary and Secondary Education-State Fiscal Stabilization Fund, Recovery Act||$47,979,323,730|
|Department of Education-Federal Student Aid-Student Financial Assistance, Recovery Act||$16,459,302,424|
|Department of Education-Office of Special Education and Rehabilitative Services-Special Education, Recovery Act||$11,171,632,059|
|Department of Education-Office of Elementary and Secondary Education-Compensatory Education for the Disadvantaged, Recove||$9,683,784,512|
|Department of Education-Office of Elementary and Secondary Education-School Improvement Programs, Recovery Act||$565,590,723|
|Department of Transportation-Federal Highway Administration-Highway Infrastructure Investment, Recovery Act||$22,072,510,920|
|Department of Transportation-Federal Transit Administration-Transit Capital Assistance, Recovery Act||$5,149,529,368|
|Department of Transportation-Federal Railroad Administration-Capital Grants to the National Railroad Passenger Corporatio||$1,297,480,554|
|Department of Transportation-Federal Aviation Administration-Grants-in-aid for Airports, Recovery Act||$1,068,633,624|
|Environmental Protection Agency-State and Tribal Assistance Grants, Recovery Act||$5,471,879,518|
|GSA-General Services Administration-Federal Buildings Fund, Recovery Act||$2,695,906,530|
|U.S. Army Corps of Engineers - civil program financing only-Operation and Maintenance, Recovery Act||$1,898,649,067|
|U.S. Army Corps of Engineers - civil program financing only-Construction, Recovery Act||$1,535,163,132|
|Department of the Army-Operation and Maintenance, Army, Recovery Act||$1,236,826,314|
|Energy / Environment||$19,356,038,799|
|Department of Energy-Energy Efficiency and Renewable Energy, Recovery||$9,404,852,420|
|Department of Energy-Deputy Administration for Defense Programs-Defense Environmental Clean-up Recovery||$4,469,059,430|
|Department of Energy-Office of Emergency Operations-Electricity Delivery and Energy Reliability, Recovery||$1,750,169,298|
|Department of Housing and Urban Development-Assistant Secretary for Public and Indian Housing-Public Housing Capital Fund||$3,586,733,180|
|Department of Housing and Urban Development-Assistant Secretary for Community Planning and Development-Home Investment Pa||$2,075,388,581|
|Department of Housing and Urban Development-Assistant Secretary for Public and Indian Housing-Project-based Rental Assist||$1,999,888,835|
|Department of Housing and Urban Development-Assistant Secretary for Community Planning and Development-Community Developm||$1,349,099,440|
|Department of Housing and Urban Development-Assistant Secretary for Community Planning and Development-Homelessness Preve||$1,138,400,600|
|National Science Foundation-Research and Related Activities, Recovery Act||$1,225,444,196|
|Department of Energy-Office of Science-Science Recovery||$1,149,395,324|
|No TAS reported--Savings to States on State Contributions for Prescription Drug Costs Due to ARRA FMAP Increase||$4,318,878,262|
|HHS-Health Resources and Services Administration-Health Resources and Services, Recovery||$2,015,401,448|
|HHS-Administration for Children and Families-Children and Families Services Programs, Recovery||$2,775,095,243|
|HHS-Administration for Children and Families-Payments to States for Child Care and Development Block Grant||$1,969,723,912|
|Job Training / Unemployment||$4,245,062,096|
|Department of Labor-Employment and Training Administration-Training and Employment Services||$3,377,536,226|
|Department of Justice-Office of Justice Programs (OJP) - Department of Justice||$2,285,495,304|
Allocation of Entitlements
Medicare / Medicaid
Medicare and Medicaid were allocated $85 bilion. Over $84 billion was allocated as aid to the states for Medicare and Medicaid assistance.
Unemployment Insurance Programs
Of the $60 billion dollars allocated to the unemployment insurance programs, $37 billion was spent in payments to the unemplouyment trust fund, $14 was allocated in additional unemployment compensation, and $10 billion was spent on employment training to the Department of Labor.
A total of $37 billion was spent on what Recovery.org calls "Family Services." With the exception of $1.7 billion given to Health and Human Services for child support enforcement, the money was allocated to welfare programs. $27 billion was allocated to the food stamp program, which is now called "SNAP." $4 billion was allocated to Temporary Assistance to Needy Families (TANF).
Economic Recovery Payments
The section titled "Economic Recovery Payments" was $13.8 billion which was composed entirely of $250 payments to individuals through the social security administration.
|Medicare / Medicaid||$85,334,358,313|
|HHS-Centers for Medicare & Medicaid Services-Grants to States for Medicaid||$84,839,275,073|
|Medicare HITECH Incentive Payments||$362,511,382|
|Medicare - Program Management||$128,604,058|
|Medicaid - General Department Management||$3,967,800|
|Unemployment Insurance Programs||$60,843,520,515|
|Department of Labor-Employment and Training Administration-Payments to the Unemployment Trust Fund||$37,275,321,752|
|Department of Labor-Employment and Training Administration-Federal Addtl Unemployment Compensation Program||$14,100,490,208|
|Department of Labor-Employment and Training Administration-Unemployment Trust Fund||$9,457,226,501|
|Railroad Retirement Board-Railroad Unemployment Insurance Extended Benefit Payments||$10,482,054|
|USDA-Food and Nutrition Service-Food Stamp Program, Recovery||$27,552,247,696|
|Emergency Contingency Fund for State Temporary Assistance for Needy Families||$4,296,002,260|
|HHS-Administration for Children and Families-Payments to States for Child Support Enforcement and Family Support||$1,730,717,360|
|HHS-Administration for Children and Families-Payment to States for Foster Care and Adoption Assistance, Recovery||$828,237,884|
|Temporary Assistance for Needy Families||$299,284,697|
|Economic Recovery Payments||$13,810,364,274|
|Social Security Administration-Economic Recovery Payments, Recovery Act||$13,214,091,251|
|Department of Veterans Affairs-Under Secretary for Benefits / Veterans Benefit Administration-Compensation and Pensions,||$466,303,773|
|Railroad Retirement Board-Economic Recovery Payments||$129,969,250|
|Grants for Specified Energy Property in Lieu of Tax Credits||$9,155,722,035|
|Bonneville Power Administration Fund||$736,132,073|
|Western Area Power Administration, Borrowing Authority||$150,427,621|
|Grants to States for Low-Income Housing Projects in Lieu of Low-Income Tax Credits||$4,978,910,485|
|Agricultural Disaster Relief Fund||$824,544,708|
|Trade Adjustment Assistance for Farmers||$34,876,755|
The ARRA contained a number of provisions that were allocated to projects that became controversial. That specific funding will be shown on this tab as it comes to light.
Project Gun Runner
Title II section 1 of the American Recovery and Reinvestment Act allocates $40 million for border security. $10 million of that money is allocated to Project Gun Runner, the program that later became Fast and Furious. The specific text is on page 130 of the ARRA.
STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE
For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $2,000,000,000, for the Edward Byrne Memorial Justice Assistance Grant program as authorized by subpart 1 of part E of title I of the Omnibus Crime Control and Safe Streets Acts of 1968 (‘‘1968 Act’’), (except that section 1001(c), and the special rules for Puerto Rico under section 505(g), of the 1968 Act, shall not apply for purposes of this Act).
For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $225,000,000, for competitive grants to improve the functioning of the criminal justice system, to assist victims of crime (other than compensation), and youth mentoring grants. For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $40,000,000, for competitive grants to provide assistance and equipment to local law enforcement along the Southern border and in High-Intensity Drug Trafficking Areas to combat criminal narcotics activity stemming from the Southern border, of which $10,000,000 shall be transferred to ‘‘Bureau of Alcohol, Tobacco, Firearms and Explosives, Salaries and Expenses’ for the ATF Project Gunrunner.
For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $225,000,000, for assistance to Indian tribes, notwithstanding Public Law 108–199, division B, title I, section 112(a)(1) (118 Stat. 62), which shall be available for grants under section 20109 of subtitle A of title II of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322). For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $100,000,000, to be distributed by the Office for Victims of Crime in accordance with section 1402(d)(4) of the Victims of Crime Act of 1984 (Public Law 98–473).
For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $125,000,000, for assistance to law enforcement in rural States and rural areas, to prevent and combat crime, especially drug-related crime.
For an additional amount for ‘‘State and Local Law Enforcement Assistance’’, $50,000,000, for Internet Crimes Against Children (ICAC) initiatives.