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Spending

The bill provides an estimated $575 billion in appropriations and direct spending. This includes: ^{[4] [5]}

• 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: ^{[6] [7]}

• 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.^[8]

Bill passage

House

The House took up consideration of H.R. 1 on January 27, 2009 and proceeded to makes changes to the original proposal. Among the modifications were:

• The removal of a provision to increase Medicaid family planning coverage. Republicans argued that the provision did not qualify as economic stimulus.^[9]
• The removal of $200 million in proposed spending to renovate the National Mall.^[10]
• An amendment sponsored by Jerrold Nadler (D-N.Y.) increasing funding for mass transit by $3 billion, which passed on a voice vote.^[11][12]

The House also rejected the following three amendments:

• An amendment by Rep. Randy Neugebauer (R-Texas) that would have stricken out all of the appropriations measures from the bill.^[13] This amendment was defeated by a vote of 302-134.

• An amendment by Rep. Jeff Flake (R-Ariz.) that would have taken out funding for Amtrak.^[14] This amendment was defeated by a vote of 320-116.

• An amendment by Rep. Dave Camp (R-Mich.) in the form of a substitute that proposed an economic package consisting mainly of tax breaks.^[15][16] This amendment was defeated by a vote of 266-170.

The amended bill passed the House on January 28, 2009 by a vote of 244-188. No Republican voted in favor of the bill.

• Name of bill: American Recovery and Reinvestment Act of 2009
• Chamber: U.S. Senate
• Roll call number: 47
• Congress number: 111th
• Session number: 1
• Vote link: U.S. Senate record vote 47, 111th Congress, Session 1

Senate

The Senate received H.R. 1 on January 29, 2009 and proceeded to develop its own version of the legislation. After a week of discussions and amendments increased the size of the bill to an estimated $900 billion, negotiations began to center on a group of Senators, led by Susan Collins (R-Maine) and Ben Nelson (D-Neb.), who sought to make $100 billion in cuts to the proposal.^[17] An agreement was eventually announced on February 6, 2009.^[18] The following day an amended version of the bill, co-sponsored by Senators Collins and Nelson, was introduced in the Senate.^[19]

Cloture was invoked on the Collins-Nelson amendment on February 9, 2009 by a vote of 61-37.

Two more votes were required to pass the Collins-Nelson version of the bill. Both took place on February 10, 2009. First, the Senate voted to waive pay-as-you-go budget rules with respect to the amendment by a vote of 61-37.

Finally, the Senate passed the amended bill by a vote of 61-37, sending it into conference with the House.

Conference

After a day of intense negotiations, House and Senate leaders came to an agreement on February 11, 2009.^[20] A few additional changes were made on February 12, 2009, after which the text of the final version of the bill was posted online at 10:45 p.m.^[21] The negotiations reduced the size of the bill to $787 billion, smaller than either the House or the Senate versions.^[22][23]

Both chambers passed the conference version of the bill on February 13, 2009.

In the House, the vote was 246-183. As in the first House vote, no Republican voted for the bill.

The Senate voted first to waive pay-as-you-go budget rules by a tally of 60-38.

Then the Senate approved final passage of the bill by the same margin of 60-38.

Bill becomes law

President Obama signed the bill into law on February 17, 2009.^[24]

Articles and resources

See also

References

1. ↑ Open Congress' info page on American Recovery and Reinvestment Act of 2009
2. ↑ David M. Herszenhorn, "Senate Approves Stimulus Plan," The New York Times, February 10, 2009
3. ↑ Douglas W. Elmendorf, "Conference Agreement for H.R. 1 (the American Recovery and Reinvestment Act of 2009)," Congressional Budget Office Director’s Blog, February 13, 2009
4. ↑ Gannett News Service, "What's in the stimulus package," Detroit Free Press, February 13, 2009
5. ↑ Michael Grabell and Christopher Weaver, "The Stimulus Plan: A Detailed List of Spending," ProPublica.org, February 13, 2009
6. ↑ Jeanne Sahadi, "Stimulus: How it may affect your wallet," CNNMoney.com, February 13, 2009
7. ↑ Stephen Ohlemacher, "Stimulus bill offers workers, businesses tax cuts," The Associated Press, February 12, 2009
8. ↑ Pallavi Gogoi,"Stimulus bill's CEO salary caps affect small banks, too" USA Today, February 16, 2009
9. ↑ Jackie Calmes and Carl Hulse, "Obama, Visiting G.O.P. Lawmakers, Is Open to Some Compromise on Stimulus", New York Times, January 27, 2009.
10. ↑ Jackie Calmes and Carl Hulse, "Obama, Visiting G.O.P. Lawmakers, Is Open to Some Compromise on Stimulus", New York Times, January 27, 2009.
11. ↑ Elana Schor, "Mass Transit Scores Big Win in House Stimulus", TPMDC, January 28, 2009.
12. ↑ Text of H.AMDT.15 from Thomas.
13. ↑ Text of H.AMDT.16 from Thomas.
14. ↑ Text of H.AMDT.18 from Thomas.
15. ↑ Liz Sidoti, "House OKs $819B stimulus bill with GOP opposition", The Associated Press, January 28, 2009.
16. ↑ Text of H.AMDT.22 from Thomas.
17. ↑ Carl Hulse, "A Diverse Group of Senators at Center Stage in Economic Debate", New York Times, February 5, 2009.
18. ↑ Carl Hulse and David M. Herszenhorn, [http://www.nytimes.com/2009/02/07/us/politics/07stimulus.html?pagewanted=all "Senators Reach Deal on Stimulus Plan as Jobs Vanish", New York Times, February, 6, 2009.
19. ↑ Thomas' info page on H.R. 1.
20. ↑ David M. Herszenhorn and Carl Hulse, "", New York Times, February 11, 2009.
21. ↑ David M. Herszenhorn, "Even After the Deal, Tinkering Goes On", New York Times, February 12, 2009.
22. ↑ David M. Herszenhorn and Carl Hulse, "Details of a Trimmer Stimulus Emerge", New York Times, February 12, 2009.
23. ↑ David M. Herszenhorn, "Recovery Bill Gets Final Approval", New York Times, February 13, 2009.
24. ↑ Sheryl Gay Stolberg, "Signing Stimulus, Obama Doesn’t Rule Out More", New York Times, February 17, 2009.

External resources

• "Times Topics: Economic Stimulus," NYTimes.com
• "ShovelWatch"
• "The Stimulus Bills: House vs. Senate", ProPublica, February 10, 2009.
• "State-by-State Breakdown of the Economic Stimulus Plan?", ProPublica, February 17, 2009.

External articles