Stimulus Package Blueprint

The blueprint for the Obama administration's economic stimulus package was drawn up quite a while ago. Though the dimensions may change, the basic structure is already determined, and the final result, although perhaps larger, will look just like the rendering we have in our hands now. The basic structure of the legislation is set out in HR 7110, which passed the House September 26, and has already had its first reading in the Senate.

Once the transition team and the leadership of both houses can agree on the numbers, the Senate will pass an enlarged version, and the bill will go quickly to a conference committee, which will hammer out the last differences and send the appropriations back to both houses of Congress for quick passage. Unless the members of the conference committee are not up to the task at hand, expect the enrolled bill to be on President Obama's Oval Office desk within minutes after he is sworn in on the steps of the Capitol, and look for him to sign it before leading Michelle onto the dance floor at the inaugural ball. What a dramatic gesture to start a new presidency!

Here are the details already in HR 7110:

General terms:

Federal money pays 100% of program costs - no state or local matching funds required

Priority goes to projects which can be let for bid and awarded within 120 days after the bill is signed into law

State and local governments which don't start spending within 180 days of receiving the money will have to give it back and the cash will be reallocated to other states and localities

Spending breakdown:

$600 million for airport construction
$12.8 billion for highway and bridge construction
$500 million for Amtrak capital construction
$3.6 billion for local transit capital construction

$1 billion for transit energy assistance, but only for:

fare reduction
expanded routes
avoiding fare hikes and service cuts
clean fuel or alternative fuel busses
increased commuter subsidies

$7.5 billion for clean water construction
$6.5 billion for pollution control construction
$ 1 billion for safe drinking water construction
$2.5 billion for flood control
$500 million for the Mississippi River basin
$2 billion for Corps of Engineers operation and maintenance
$125 million for water reclamation construction

$3 billion for school modernization

cannot be spent on maintenance or stadium building
cannot reduce or replace state aid to schools
construction must use U. S. produced steel
25% must be spent on green construction

$1 billion for public housing construction
$500 million for renewable energy demonstration projects
$100 million for electric grid upgrade construction
$1 billion in loan guarantees for advanced battery development
$400 million for job training programs

The legislation also extends an additional 13 weeks of unemployment benefits temporarily through August 27, 2009; increases Medicaid matching to the states by 1%; increases food stamp benefits by 5% through September 30, 2009; and prohibits payments of any money under these programs to illegal immigrants.

If you would like a copy of a spreadsheet detailing the state by state breakdown of distribution for these funds, send me an e-mail request and I will get it out to you right away.