Obama’s Stimulus Package Complete Breakdown

I’ve been on the prowl for a complete stimulus package breakdown like this for a while, and I finally found one posted by CNN Money. They break down all the details of Obama’s initially proposed $825 billion stimulus package, citing the overall goals and financial disbursements of the package.

(See Bottom of post for latest Updates)

Obama’s stimulus package could be seen approved by mid February and focuses spending and tax cuts through four primary areas:

  1. Infrastructure - Rebuilding our highways, bridges, schools, etc. alongside creating more renewable energy (39% of total)
  2. State Relief - Helping the states with unemployment benefits, budget shortfalls, medicaid, and the like (13% of total)
  3. Struggling Citizens – Increase food stamps, unemployment insurance coverage, and provide insurance for the jobless (12% of total)
  4. Tax Cuts – Tax cuts to individuals and business (36% of total)

Republicans feel that much more should be spent on providing tax cuts and feel that this stimulus plan is simply an excuse for Democrats to spend and push their own programs. This is highlighted by the $54 Billion that will be spent on a renewable energy policy. Other opposition feel the plan is exaggerated as the proposed 3-4 million jobs created is more realistically under 1 million.

Several breakdowns from the stimulus package include:

Construction projects: $90 billion. Fund the rebuilding of crumbling roads and bridges, build clean water and flood control mechanisms and provide funding for mass transit systems.

Education: $142 billion. Rebuild thousands of schools by modernizing classrooms, labs and libraries. The plan would also increase funding for Pell Grants.

Renewable energy: $54 billion. Double production of alternative energy in the next three years. Weatherize low-income homes, modernize 75% of federal buildings and update the nation’s electrical grid with a new, cost-efficient “smart” grid.

Medicaid: $87 billion. Increase Federal Medicaid Assistance Percentage so states do not have to cut eligibility for Medicaid due to budget shortfalls.

Unemployment benefits: $43 billion. Extend through December 2009 emergency unemployment insurance assistance to states. Increase weekly unemployment benefits by $25, and provide incentives for states to expand unemployment coverage.

Middle-class tax cut: $145 billion. Tax cut amounting to $500 a year for individuals and $1,000 for couples. The full credit would be limited to those making $75,000 or less ($150,000 or less for workers filing joint returns).

Tax cuts for companies suffering losses: $17 billion over 10 years. Obama would temporarily broaden the “net-operating loss carryback” to five years, up from two years currently. The provision would let companies apply their 2008 and 2009 losses to past and future tax bills so they can get money back on taxes they’ve already paid or would otherwise have to pay.

Another key piece of the stimulus package that is being debated is how long it will take before the economy actually sees any of this spending take place. Argued is that well less than 50% of the stimulus will be utilized in the first year, with one report suggesting that only 64% of the stimulus would reach the economy by 2011.

The WSJ today has a great interactive chart showing visually how the majority of spending will be disbursed amongst the states:

stimulus-bill-state-breakdown

In a rare visit the President made his way to Capitol Hill to stress urgency as another 70,000+ layoffs have already been announced this week. We will continue to post updates as they come.

01-29-09 Update: The House Passed the Bill (Note: this is the earlier version, see 2/13 update).

02-04-09 Update: Proposed Aggregator Bank Flaws revealed.

02-10-09 Update: Treasury Secretary Geithner Reveals new plan which is not well received by the market.

02-13-09 Update: House passes $787 Billion Version of Stimulus Package, 246 to 183. Not one Republican voted yes. Read more.

02-17-09 Update: President Obama signs the Stimulus Package into law.

02-26-09 Update: We break down the Obama budget plan.

Sources:
Stimulus 101: What’s in the Bills
David Goldman
CNNMoney.com, Tuesday January 27th, 2009

Stimulus Bill Near $900 Billion
Greg Hitt and Elizabeth Williamson
WSJ, January 28th, 2009

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Comments

  1. Pamela Elam says

    will there be any increase in monthly benifits for the disabled or elderly,whom already does not recieve enough to live off of?Theyre is a waiting list an arm long for housing,and the average person on ssi only recieves 675.00 a month to live off of,and the ederly are not doing much better.
    I would love to see what decent rental property,or home, that can be afforded on this income,other than a project; oh but i forgot,their is a housing crises,a waiting list. Republicans never look out for the poor or common man,it is always about them. Iam sick and tired of the i got mine attitude now get yours. Everyone can’t start over, or pull themselves up by their boot straps,becauese some of them don’t have legs,are paralyzed and can’t walk.

  2. Jay says

    Well,

    Nothing is free, and this “change” will be something that America will be paying for, for a long time. The point in which I am making is; the majority of those who can’t walk or truely disable make up about 1/16% of the the entire diabled group. Therefore the majority of those claiming benefits “The people who park in handicap parking and strole into fiesta with several kids with a tag hanging from there mirror.” My friend that is your true enemy. As long as the system is flooded by people whom don’t pay for the benefits, the less there is for the ones that truely need it. Keep your head up and eyes open, change is happening all around.

    “Change, It’s always better to party at someone else’s expense.”

  3. says

    It’s going to be a long road to recovery. We all need to take personal responsibility for our portfolios and beware of anything “too good to be true”.

  4. Jay says

    Joke: “Too good to be true.” I guess your referring to the Stimulus package.

    Stability is the way to go, when banks and housing markets are down. Cigarettes and toliet paper seem to make the most sense. Neither of which I know anything about, other than there uses. LOL, Anyone spot up safe investments in these times please feel free to post, I will take some free knoweldge.

  5. Glenn says

    I just want to know where the 550 billion in new spending is going??? Anybody know??? I keep hearing that this bill is loaded with PORK-54% I heard. I wanna see!!!! As far as all the other parts of the bill I don’t have a problem with it, Tax cuts are good, Infrastruture improvements are good. Where is all the lobby and special interest money going to????

  6. Jay says

    I have herd from several individuals that 31 million will be for the protection of a species of field rat in California. Now how is this going to create jobs? I guess we will have rat dry cleaners opening up, along with rat nail saloons. The majority of the pork will be towards liberal agendas like this one. The money will be tied to a pointless cause but will be truly used for the individual states person benefit. Chicago under the table politics’ at it’s best. Berry “Madeoffwithyourmoney”

    “Change, It’s always better to party at someone else’s expense.”

  7. sandy says

    what is a stimulus package. does the bank or state who get this money have to pay
    back the govenment? if no, why the government don’t give every american citizen
    who pays taxes (rich or poor) $100,00 to start their lives back over. that would be
    very very nice!!!

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