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Spending Breakdown of the Economic Stimulus Plan

The economic downturn has had a devastating effect on the economies of the world. In February 2009 President Obama, in order to curb the ill-effects of this downturn and boost the US economy came up with a stimulus plan which was enacted and came to be called the American Recovery and Reinvestment Act of 2009. The total stimulus package is for $787.2 billion and can mainly be divided into two parts consisting of tax cuts and spendings on various sectors of the economy. Let us now see how much is going to be spent under some of the major headings.

Infrastructures

Infrastructures has been alloted a total of $80.9 billion and is divided into three categories of Core Investments, Investments in Government Facilities and Vehicle Fleets, and Supplemental Investments. Core investments gets the major share of $51.2 billion and will be spent on projects for constructing highways and bridges, intercity railways for passengers, public transportation equipment, drinking and waste water infrastructure, Amtrak, helping transit agencies for the public and maintenance of the current systems of public transportation.

$29.5 billion will be invested in vehicle fleets and government facilities like Army Corps of Engineers, General Services Administration, Defense Department, Office of Federal High-Performance Green Buildings, Clean and Drinking Water Resolving Funds, and Department of Housing and Urban Development. This amount will also cover improving facilities for the National Guard, Coast Guard, Child development centers and Job Corps.

Science and Technology

In the stimulus plan a sum of $8.9 billion will be spent on scientific research and technological development programs. Of this amount, National Science Foundation gets $3 billion, United States Department of Energy gets $2 billion, $1.3 billion goes to research facilities in universities, NASA gets one billion dollars, NOAA gets $600 million, National Institute of Standards and Technology gets $580 million, United States Geological Survey gets $140 million and the remaining $230 million will be spent on operations of the NOAA and its facilities and research programs.

Health Care

A total of $147.7 billion will be spent on Healthcare, of which $86.6 billion will go to Medicaid. Insurance for health care for the unemployed will get a subsidy of $24.7 billion and $19 billion will be spent on technology providing health information. Health facilities and Institutes construction and research on health will get $10 billion. Medical care will be give to military personnel and their family members for which $1.3 billion is allocated. Veterans Health Administration and Community Health Centers will get $1 and $2 billion respectively. Training programs for health-care personnel will get $500 million and the same will be spent towards services of health care on Indian reservation areas. $1 billion will go towards wellness and prevention programs.

Energy

Energy has been given due consideration in the stimulus plan and the spending is geared towards making United States less dependent on oil and making the existing energy systems more efficient with importance given to generation of renewable energy. A total of $61.3 billion has been allocated for Energy, of which $11 billion will go towards smart grid electric systems. The other main spends in this category are $6.3 billion on investments by local and state governments to improve efficiency of energy, $6 billion for guarantees on loans for technologies of electric transmission and renewable energy, $5 billion for weatherizing the houses of low-income people, $6 billion for cleaning radioactive waste on the sites of power plants, and $4.5 billion for modernizing the electrical grid and making it smart.

Education / School

$90.9 billion will be spent towards education and on schools. A major part of this total, amounting to $44.5 billion will be given as aid to district schools to be used for modernizing and repairing of the school and preventing cutbacks and layoffs of staff. Pell Grants will be increased by $15.6 billion and $13 billion will be spent on children of low-income groups attending public schools. Special education of IDEA will get $12.2 billion and $2 billion for services of child care. $650 million will be spent on technology dealing with education and $300 million will go towards increasing salaries of teachers.

Business

A major thrust is given to business in the stimulus plan with special attention given to small and businesses in rural areas. A total of $870 million will be spent on business with rural business programs getting $150 million. For development of small businesses and micro-loan programs, $69 million has been allocated. For providing small business loans a sum of $636 million will be spent and $15 million on revolving funds with guarantees of Surety bond.

Aid to State and Local Government

A total of $58.35 billion will be given as aid to state and local government, of which $295 million will be spent to increase the food stamp program and the connected administrative expenses. $2 billion will be spent towards grants and assistance given to different programs of The Office of Justice and local law enforcement. Programs for economic development will get $150 million, preventing violence against women and prosecuting the guilty will get $225 million. The major part amounting to $53.6 billion will be allocated to the State Fiscal Stabilization Fund with the aim to curtail layoffs and cutbacks.

Aid to People Affected by the Economic Downturn

$36.9 billion will be spent to provide aid to people affected by the economic downturn. The program for Rural Housing Service insurance fund will get $11.67 billion and $19.9 billion will be spent towards increasing the benefits temporarily of the Supplemental Nutrition Assistance Program. $1 million will be spent on food and shelter in emergency situations, and $1.65 billion will be for assisting child care programs for low-income families.

Accountability

$323.5 million will be spent on accountability. The money will be spent on the Office of the Inspector General of various Departments like Commerce, Agriculture, Justice, NASA, Defense, Energy, Treasury, General Services Administration, Homeland Security, Bureau of Indian Affairs, Labor, Health and Human Services, Education, Social Security Administration, Veteran Affairs, Transportation and many other departments.

Tags: government, Income, Insurance, law, loan, money, Stimulus, tax

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