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The final (conference) version of the American Recovery and Reinvestment Act of 2009 (H.R. 1) totals $787 billion in spending and tax cuts over the period of 2009-2019.(The earlier House version totaled $819 billion, while the Senate version totaled $838 billion.) Lawmakers had estimated the cost of the final package to be $789 billion, but the nonpartisan Congressional Budget Office said the plan would cost a total of $787 billion and increase the federal deficit by $185 billion this year and by $399 billion next year.
Spending
The bill provides an estimated $575 billion in appropriations and direct spending.
This includes:
This includes:
- Direct aid to people affected by economic downturn
- Increase unemployment benefits by $25 per week
- Increase food stamp benefits by 13 percent per month
- 60 percent subsidy for up to nine months for those laid off to help cover price of continuing coverage of health care under COBRA
- $4 billion for job training
- Health care
- $87 billion in expanded Medicaid coverage to the poor
- $19 billion for updating health information technology
- Education
- $500 increase in maximum Pell Grants (to $5,350 in 2009 and $5,550 in 2010) for low-income students
- $54 billion to states and local school districts
- $12 billion for special education
- $1 billion for Head Start
- Infrastructure
- $29 billion to modernize roads and bridges
- $18 billion for clean water, flood control and environmental restoration
- $8.4 billion for transit
- $8 billion for high-speed rail
- $7 billion to expand broadband coverage, mostly in rural areas
- $5 billion to improve Defense Department facilities, including housing for troops
- $4.5 billion to make federal office buildings more energy-efficient
- Energy
- $30 billion to update power grid
- $6.3 billion to improve energy efficiency in federally-assisted multifamily housing
- $5 billion to weatherize low-income homes
Tax cuts
The bill provides an estimated $212 billion in tax cuts, including:
- One-time payment of $250 to those who receive Social Security or government disability
- Tax credit of up to $400 for individuals who earn less than $75,000 per year, and up to $800 for families who earn less than $150,000 per year
- $8,000 credit for first-time home buyers if home purchased between January 1, 2009 and December 1, 2009
- Tax credit of $2,500 for higher education
- Tax credit of up to $1,500 for homeowners who make homes more energy efficient
- Car buyers can deduct sales tax from taxable income if car purchased in 2009
- 24 million people exempted from Alternative Minimum Tax in 2009
- Earned Income Tax Credit expanded to low-income families - that pay no taxes - with three or more children
- Expansion of $1,000 per child tax credit to more low-income families
- The remainder of the tax cuts are geared toward business, with about $20 billion for renewable energy tax credits
The bill also included provisions that would cap executive pay at $500,000, limit bonuses, and eliminate "golden parachutes" at any bank receiving federal money.