Tarpley & Underwood
Financial Advisors, LLC
Obama's Stimulus Plan
A look at where the money goes.
President Obama signs The Recovery & Reinvestment Act on February 17, 2009
$78 billion to the jobless.
That includes a one-time $250 check to Social Security, veterans’ benefits and Supplemental Security Income recipients ($14 billion). $9 billion will be spent to boost unemployment checks by $25 a week and allow extended benefits for the long-term unemployed through 2009. $25 billion subsidizes continued group health coverage for people who lost their jobs between 9/1/08 and 12/31/09; their income must not exceed $125,000 (individuals) and $250,000 (families).1
$20 billion for healthcare.
$17 billion of this represents incentives for Medicaid and Medicare to adopt new, digital health information technologies.2
III. $308 billion in discretionary spending includes…
$106 billion for job training & education.
$54 billion of this is designed to help states ward off cutbacks and layoffs, mostly in school systems.2
$48 billion for transportation projects.
$28 billion goes to road and bridge building; $8 billion goes to inner-city and high-speed rail projects.2 & 3
$44 billion to energy projects.
$11 million will update the U.S. electric power grid.2
$41 billion for infrastructure, environment & water projects.
The biggest expense here is the $7 billion to expand rural America’s broadband capability.2
II. $192 billion in direct aid includes…
$94 billion to states.
$87 billion of that goes to Medicaid.2
$29 billion in health & science funding/research.
$10 billion of this heads to the National Institute of Health, a world-respected medical research center.2
$40 billion for other projects.
Out of this, $20 billion will extend food stamp benefits, and $13 billion will go to housing programs.2
Let’s hope all the money stimulates the economy.
These are the views of Peter Montoya Inc., not Tarpley & Underwood Financial Advisors, LLC, and should not be construed as investment advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your financial professional for further information.
Citations
1 nytimes.com/2009/02/14/us/politics/14stimintro.ready.html?em [2/14/09]
2 nytimes.com/imagepages/2009/02/14/us/politics/14stimulus_graphic.ready.html [2/14/09]
3 cnn.com/2009/POLITICS/02/13/stimulus.winners.losers/ [2/13/09]
4features.csmonitor.com/economyrebuild/2009/02/14/my-five-favorite-things-in-the-stimulus-bill/
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