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ges upload file permanent link page information cite this page get shortened url switch to legacy parser print export download as pdf printable version in other projects wikimedia commons wikidata item appearance move to sidebar hide from wikipedia the free encyclopedia redirected from american recovery and reinvestment act stimulus package american recovery and reinvestment act of 2009 long title an act making supplemental appropriations for job preservation and creation infrastructure investment energy efficiency and science assistance to the unemployed state and local fiscal stabilization for the fiscal year ending september 30 2009 and for other purposes acronyms colloquial arra nicknames recovery act enacted by the 111th united states congress effective february 17 2009 citations public law 111 5 statutes at large 123 stat 115 codification acts amended energy policy act of 2005 energy policy act of 1992 public utility regulatory policies act of 1978 public utility holding company act of 1935 titles amended 16 u s c conservation 42 u s c public health and social welfare u s c sections amended 16 u s c ch 46 2601 et seq 42 u s c ch 134 13201 et seq 42 u s c ch 149 15801 et seq legislative history introduced in the house as h r 1 by dave obey d wi on january 26 2009 committee consideration by appropriations and budget passed the house on january 28 2009 244 188 passed the senate on february 10 2009 61 37 reported by the joint conference committee on february 12 2009 agreed to by the house on february 13 2009 246 183 and by the senate on february 13 2009 60 38 signed into law by president barack obama on february 17 2009 major amendments tax relief unemployment insurance reauthorization and job creation act of 2010 the american recovery and reinvestment act of 2009 arra pub l 111 5 text pdf nicknamed the recovery act was a stimulus package enacted by the 111th u s congress and signed into law by president barack obama in february 2009 developed in response to the great recession the primary objective of this federal statute was to save existing jobs and create new ones as soon as possible other objectives were to provide temporary relief programs for those most affected by the recession and invest in infrastructure education health and renewable energy the approximate cost of the economic stimulus package was estimated to be 787 billion at the time of passage later revised to 831 billion between 2009 and 2019 1 the arra s rationale was based on the keynesian economic theory that during recessions the government should offset the decrease in private spending with an increase in public spending in order to save jobs and stop further economic deterioration the politics around the stimulus were very contentious with republicans criticizing the size of the stimulus on the right it spurred the tea party movement and may have contributed to republicans winning the house in the 2010 midterm elections 2 3 4 not a single republican member of the house voted for the stimulus 5 and only three republican senators voted for it 6 most economists agree that the stimulus was smaller than needed 3 7 8 though surveys of economists show overwhelming agreement that the stimulus reduced unemployment 9 10 and that the benefits of the stimulus outweigh the cost 9 legislative history edit both the house and the senate versions of the bills were primarily written by democratic congressional committee leaders and their staffs 11 because work on the bills started before president obama officially took office on january 20 2009 top aides to president elect obama held multiple meetings with committee leaders and staffers on january 10 2009 president elect obama s administration released a report 12 that provided a preliminary analysis of the impact to jobs of some of the prototypical recovery packages that were being considered house of representatives assembly edit official seal of recovery gov the official site of the american recovery and reinvestment act of 2009 the house version of the bill h r 1 was introduced on january 26 2009 13 by dave obey the chairman of the house committee on appropriations and was co sponsored by nine other democrats on january 23 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 14 although 206 amendments were scheduled for floor votes they were combined into only 11 which enabled quicker passage of the bill 15 on january 28 2009 the house passed the bill by a 244 188 vote 16 all but 11 democrats voted for the bill but not a single republican voted in favor 177 republicans voted against it while one republican ginny brown waite did not vote 17 senate edit the senate version of the bill s 1 was introduced on january 6 2009 and later substituted as an amendment to the house bill sa 570 it was sponsored by harry reid the majority leader co sponsored by 16 other democrats and joe lieberman an independent who caucused 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 14 a significant difference between the house version and the senate version was 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 bill directed at increasing the share of tax cuts and downsizing spending as well as decreasing the overall price 18 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 19 other considered amendments included the freedom act of 2009 an amendment proposed by senate finance committee members maria cantwell d and orrin hatch r to include tax incentives for plug in electric vehicles 20 the senate called a special saturday debate session for february 7 at the urging of president obama the senate voted 61 36 with 2 not voting on february 9 to end debate on the bill and advance it to the senate floor to vote on the bill itself 21 on february 10 the senate voted 61 37 with one not voting 22 all the democrats voted in favor but only three republicans voted in favor susan collins olympia snowe and arlen specter 23 specter switched to the democratic party later in the year at one point the senate bill stood at 838 billion 24 comparison of the house senate and conference versions edit president barack obama signs the arra into law on february 17 2009 in denver colorado vice president joe biden stands behind him president barack obama speaks about the 2 000th project approved through the arra the president is joined by vice president joe biden and secretary of transportation ray lahood senate republicans forced a near unprecedented level of changes near 150 billion in the house bill which had more closely followed the obama plan a comparison of the 827 billion economic recovery plan drafted by senate democrats with an 820 billion version passed by the house and the final 787 billion conference version shows huge shifts within these similar totals additional debt costs would add about 350 billion or more over 10 years many provisions were set to expire in two years 25 the main funding differences between the senate bill and the house bill were more funds for health care in the senate 153 3 vs 140 billion renewable energy programs 74 vs 39 4 billion for home buyers tax credit 35 5 vs 2 6 billion new payments to the elderly and a one year increase in amt limits the house had more funds appropriated for education 143 vs 119 1 billion infrastructure 90 4 vs 62 billion and for aid to low income workers and the unemployed 71 5 vs 66 5 billion 24 spending senate 552 billion house 545 billion edit address before a joint session of congress february 24 2009 52 20 barack obama s february 24 2009 address before a joint session of congress the american recovery and reinvestment act of 2009 was a focal point of the speech address before a joint session of congress february 24 2009 audio audio only version problems playing these files see media help aid to low income workers and the unemployed senate 47 billion to provide extended unemployment benefits through december 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 recipients of supplemental security income and social security and veterans receiving disability and pensions house 4 billion to provide a one time additional supplemental security income and social security disability insurance payment to the elderly of 450 for individuals and 630 for married couples conference 250 one time payment to each recipient of supplemental security income social security regular disability insurance veterans pension railroad retirement or state retirement system 26 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 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 preventive 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 for 9 months will apply to workers laid off between sep 1 2008 and dec 31 2009 those already laid off have 60 days to apply for cobra 27 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 28 hard hit states such as nevada cannot possibly find enough funds to get to the 2005 06 state funding levels for education 29 some states with no current budget cuts for education such as arkansas and north carolina may get nothing 30 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 than 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 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 tax changes 275 billion edit 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 do not 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 31 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 cannot 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 31 expanded child credit house 18 3 billion to give greater access to the 1 000 per child tax credit for low income ...
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