American Recovery and Reinvestment Act of 2009 (H.R. 1)

greenbulb

HIGHLIGHTS

1.  GREEN JOBS ACT: $500 Million
In 2007,  the Green Jobs Act signed into law. The Act authorizes federal support for green-collar job-training programs. But last year, Congress failed to appropriate the money. Now, President Obama and the House want to invest $500 million in these programs.

2.  WEATHERIZATION: $6.2 Billion
President Obama’s recovery package contains the largest weatherization investment in history, as well as funding for a number of other programs that will increase the energy efficiency of America’s buildings. Upgrading our buildings so that they protect us better from the weather means we can spend less energy heating and cooling them.

Download: American Recovery and Reinvestment Act of 2009

SUMMARY

H.R. 1 would specify appropriations for a wide range of federal programs and would increase or extend certain benefits payable under the Medicaid, unemployment compensation, and nutrition assistance programs. The legislation also would reduce individual and corporate income tax collections and make a variety of other changes to tax laws.

Assuming enactment in mid-February, CBO estimates that the bill would increase outlays by $92 billion during the remaining several months of fiscal year 2009, by $225 billion in fiscal year 2010 (which begins on October 1), by $159 billion in 2011, and by a total of $604 billion over the 2009-2019 period. That spending includes outlays from discretionary appropriations in Division A of the bill and direct spending resulting from Division B.

In addition, CBO and the Joint Committee on Taxation (JCT) estimate that enacting the provisions in Division B would reduce revenues by $76 billion in fiscal year 2009, by $131 billion in fiscal year 2010, and by a net of $212 billion over the 2009-2019 period.

Combining the spending and revenue effects of H.R. 1, CBO estimates that enacting the bill would increase federal budget deficits by $169 billion over the remaining months of fiscal year 2009, by $356 billion in 2010, by $174 billion in 2011, and by $816 billion over the 2009-2019 period.

CBO anticipates that implementation of H.R. 1 would have a noticeable impact on economic growth and employment in the next few years. Following longstanding Congressional budget procedures, however, this estimate does not address the potential budgetary effects of such changes in the economic outlook.

CBO has reviewed the nontax provisions of the bill for mandates as defined in the Unfunded Mandates Reform Act (UMRA). Those provisions contain both private-sector and intergovernmental mandates, with costs that CBO estimates would likely exceed the annual threshold established in UMRA for the private sector ($139 million in 2009, adjusted annually for inflation) and with costs that would be well below the annual threshold established for state, local, and tribal governments ($69 million in 2009, adjusted annually for inflation).

JCT has reviewed the tax provisions of the bill and has determined that they contain no intergovernmental mandates as defined by UMRA; it has concluded that they contain one private-sector mandate and that the costs required to comply with the mandate would significantly exceed the annual threshold established for private-sector mandates for 2009 and each of the following five years.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: