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Recovery Act Overview

American Recovery and Reinvestment Act of 2009 by the Numbers

Estimated total cost: $787 billion

Note: all amounts refer to costs over next decade; many are rounded to nearest billion. For more details on many of the programs, see the accompanying subject pages.

Broad Breakdown

Outlays (about $480 billion)
for individuals and businesses: $150 billion
for state and local government: $255 billion
for federal government operations: $75 billion

Tax expenditures (about $300 billion)
for individuals: $250 billion
for companies: $50 billion

Note: There is some inconsistency in the designation of certain items (such as health-information technology incentives) as tax expenditures or outlays.

Types of Money Flows

  • Tax savings for individuals
  • Tax savings for companies
  • Direct benefit payments to individuals
  • Formula grants to state and local governments
  • Discretionary or competitive grants to state and local governments
  • Contract awards by federal agencies
  • Non-governmental grants awarded by federal agencies
  • Contract awards by state agencies
  • Non-governmental grants awarded by state agencies
  • Tax-exempt bonding authority

Major Categories

TAX CHANGES

Individual Income Tax
"Making Work Pay" payroll tax credit (cost: $116 billion)
Alternative Minimum Tax relief (cost: $70 billion)
Earned Income Tax Credit increase (cost: $5 billion)
Child tax credit increase (cost: $15 billion)
"American Opportunity" (replaces Hope) tuition tax credit (cost: $14 billion)
Increase in tax credit for first-time homebuyers (cost: $7 billion)
Sales tax deduction for vehicle purchases (cost: $2 billion)
Temporary suspension of taxation of unemployment benefits (cost: $5 billion)
Tax credits for energy-efficiency improvements to existing homes (cost: $2 billion)
Plug-in electric drive vehicle tax credits (cost: $2 billion)

Business Taxes
Bonus depreciation (cost: $5 billion)
Renewable energy production credits (cost: $13 billion)
Five-year carryback of net operating losses for small businesses (cost: $1 billion)
Delayed recognition of certain cancellation of debt income (cost: $2 billion)
Small business capital gains tax relief (cost: $1 billion)

Tax-Exempt Bonds
New tax credit bonds for school construction (cost: $10 billion)
Economic Recovery Zone bonds (cost: $5 billion)
Tax credit bond option for state and local governments ("Buy America Bonds") (cost: $4 billion)

APPROPRIATIONS

Major Categories with main examples

Countercyclical Funds
Increase in Medicaid funding to states ($87 billion)
State Fiscal Stabilization Fund ($54 billion)

Appropriated Funds
Highway construction projects ($28 billion)
Transit Capital Assistance ($8 billion)
High-speed rail ($8 billion)

Safety Net
Extension/increase of unemployment benefits ($39 billion)
Subsidy for workers switching to COBRA after losing health coverage ($25 billion)
Increase in food stamp program ($20 billion)

Foundations for Economic Growth
Incentive payments to health care providers re computerization ($21 billion)
Expansion of broadband access ($7 billion)
Electric grid modernization ($11 billion)

Details on Funding Streams

Aid to Individuals and families
Extra payments to retirees and the disabled ($14 billion)
Extension/increase of unemployment benefits ($39 billion)
Subsidy for workers switching to COBRA after losing health coverage ($25 billion)
Expansion of Trade Adjustment Assistance benefits for displaced workers ($2 billion)
Increase in food stamp program ($19 billion)
Increases in Pell Grants ($16 billion)

Transportation
Highway construction projects ($28 billion)
Mass transit ($7 billion)
Rail transportation ($9 billion)
Airports ($1 billion)

Education
State Fiscal Stabilization Fund: mainly aid to local school districts ($40 billion)
Bonus grants to states for meeting performance goals ($5 billion)
High-priority needs such as public safety ($9 billion)
Title I grants for disadvantaged students ($13 billion)
Special education programs ($12 billion)
Additional Head Start enrollment ($2 billion)

Energy
Electric grid modernization ($11 billion)
Improve energy efficiency of federal buildings ($5 billion)
Local government energy efficiency and conservation grants ($6 billion)
Weatherization Assistance Program for low-income households ($5 billion)
Renewable energy loan guarantees ($6 billion)
Advanced battery grants ($2 billion)
Clean fossil energy research and development ($3 billion)

Telecom
Expansion of broadband access via NTIA and Rural Utilities Service grants ($7 billion)

Job Training
WIA Title I state formula grants for adult, dislocated worker and youth programs ($4 billion)
Other workforce development funding ($1 billion)
Training for green jobs ($0.5 billion)

Low-Income Assistance
Increase in child care services for low-income families ($2 billion)
Community Service Block Grants ($1 billion)
TANF emergency contingency fund (cost: $5 billion)

Health
Prevention and Wellness Fund  ($1 billion)
Healthcare effectiveness research ($1 billion)
Community health centers ($2 billion)
Incentive payments to health care providers re computerization ($21 billion)

Environment
Clean-up of former weapons production and energy research sites ($6 billion)
Local water infrastructure improvements ($6 billion)
Superfund hazardous waste funding increase ($1 billion)

Housing
Public housing capital fund ($4 billion)
Payments to owners receiving Section 8 project-based rental assistance ($2 billion)
Low-income housing credits ($2 billion)
Redevelopment of abandoned and foreclosed houses ($2 billion)
Homelessness Prevention Fund ($2 billion)

Security, Public Safety, Law Enforcement
Law enforcement grants to state and local governments ($4 billion)
Airport and border security ($3 billion)

Military
Upgrade of military housing, hospitals and other facilities ($7 billion)

Science
NASA research on climate science, etc. ($1 billion)
National Science Foundation Facilities modernization ($3 billion)
Department of Energy basic research on high-energy physics ($2 billion)

Small business
New SBA loan and loan guarantee authority ($1 billion)

Main Provisions for Low-Income Populations

Increase in food stamp program: $19 billion
Increases in Pell Grants for college tuition: $16 billion
"American Opportunity" tuition tax credit: $14 billion
Earned Income Tax Credit increase: $5 billion
Increases in worker training funding: $4 billion
Child Care and Development Block Grants: $2 billion
Funding for additional Head Start enrollment: $2 billion
TANF emergency contingency fund: $5 billion
Community Services Block Grants: $1 billion
Weatherization Assistance Program for low-income households ($5 billion)

Main Forms of Aid to States and Localities

Formula funded (approximately $230 billion)

Flexible:
State Fiscal Stabilization Fund block grants (mostly for education): $48 billion

Targeted:
Increase in Medicaid funds (via changes in Federal Medical Assistance Percentage or FMAP): $87 billion
Highway Infrastructure Investment Fund: $28 billion
Public Transit Capital Assistance: $7 billion
Title I-A education grants to states: $10 billion
Title I-A school improvement grants: $3 billion
Grants for IDEA special education programs: $12 billion
TANF emergency contingency fund: $5 billion
Child Care and Development Block Grants: $2 billion
Workforce Investment Act job training grants: $4 billion
Community Services Block Grants: $1 billion
Weatherization Assistance Program for low-income households:  $5 billion
Energy efficiency and conservation formula grants: $3 billion
State Energy Program formula grants: $3 billion
Clean Water and Drinking water infrastructure improvements: $6 billion
Low Income Housing tax credits: $2 billion
Public Housing Capital Fund: $3 billion
Homelessness Prevention Fund: $2 billion
Byrne Justice Assistance Grants: $2 billion

Discretionary and Competitive Grants (about $25 billion)
NTIA and Rural Utilities Service broadband grants: $7 billion (not all to states)
Worker Training and Placement in High Growth and Emerging Industry Sectors: $1 billion
Public Housing Capital Fund competitive grants: $1 billion
EPA grants for Superfund sites and leaking underground storage tanks: $1 billion
State Fiscal Stabilization Fund incentive grants: $5 billion
HUD Neighborhood Stabilization Program: $2 billion
HUD Community Development Block Grants: $1 billion
HHS Head Start expansion grants: $2 billion
HHS Community Health Center Grants: $2 billion
DOJ COPS Hiring grants: $1 billion
DOT Surface Transportation competitive grants: $2 billion
Dept. of Energy various energy efficiency and alternative fuels competitive grants: $1 billion