Democrats Unveil $825 Billion Stimulus Measure By COREY BOLES
WASHINGTON -- House lawmakers revealed details of the spending aspects of the $825 billion stimulus bill, which includes funding for infrastructure, investments in clean energy, increased aid to state governments and $275 billion in tax breaks for businesses and individuals.
The detailed spending provisions were made public by the House Appropriations Committee. A separate breakdown of the tax credits to be included in the bill was published by the House Ways and Means Committee.
The bill is broken down into roughly $275 billion in tax cuts and $550 billion in spending initiatives. The package is the largest economic stimulus legislation ever put forward by the federal government in an effort to deal with what could be the deepest economic downturn since the Great Depression.
Among the largest allocations is $90 billion for infrastructure projects that will include road, bridge and sewer system repairs; federal building upgrades and improvements to make them more energy efficient; and public transit projects.
Among the tax provisions, released separately by the House Ways and Means Committee, are expanded credits for first time home buyers, and a list of tax breaks for business including more generous depreciation, a proposal to allow companies to use current losses to offset income as far back as five years.
A key element of the recovery package identified by President-elect Barack Obama and House Speaker Nancy Pelosi, (D., Calif.), has been to not simply invest in traditional infrastructure but to spend money improving the efficiency of the federal government.
The plan calls for spending to make federal government buildings more energy efficient, as well as substantial investments in the energy grid to transform it into a "greener-grid".
A key element identified by President-elect Obama has been to spend money improving the efficiency of the federal government. There is $6 billion in grants to entities seeking to expand broadband Internet service to rural and underserved parts of the country.
Another top priority of the incoming Obama administration would be $20 billion in spending for health care information systems, designed to make the provision of health care more efficient and cost-effective. A key element of this is money to invest in transferring patient medical records to an electronic basis.
A significant transfer of funds is proposed to state and local governments to help them cope with the increasingly dire fiscal position many are facing. These include funding for health care and education programs. The plan calls for spending $20 billion to modernize schools, and more than $26 billion to fund special education and other K-12 programs.
For those most affected by the prolonged recession, there is $43 billion to extend unemployment insurance benefits and to pay for job retraining for the unemployed, $39 billion through the Cobra Program to pay for short-term medical costs for those who have lost their insurance as a result of losing their jobs, and $20 billion to increase funding for food stamps.
There is an extension of federally-subsidized child care facilities to low-income families that don't currently receive any federal support.
There are expected to be public hearings on the bill in the House next week. The stated goal of lawmakers is to approve the final spending package before the scheduled congressional research in mid-February.
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<http://online.wsj.com/article/SB123204034869386185.html?mod=article-outset-box
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Here are highlights of the $825 billion economic recovery plan drafted by House Democrats and President-elect Barack Obama's economic team. Most provisions are temporary.
SPENDING
Energy: $32 billion to fund a so-called "smart electricity grid" to reduce waste; $20 billion-plus in renewable energy tax cuts and a tax credit for research and development on energy conservation, energy efficiency and renewable energy, and a multiyear extension of the renewable energy production tax credit for wind, hydropower, geothermal and bioenergy; $6 billion to weatherize modest-income homes.
Science and technology: $10 billion for science facilities; $6 billion to bring high-speed Internet access to rural and underserved areas; $1 billion for the 2010 Census.
Infrastructure: $32 billion for transportation projects; $31 billion to build and repair federal buildings and other public infrastructure; $19 billion in water projects; $10 billion in rail and mass transit projects.
Aid to the poor and unemployed: $43 billion to provide extended unemployment benefits through Dec. 31, increase them by $25 a week and provide job training; $20 billion to increase food stamp benefits by 13%; $4 billion to provide a one-time additional Supplemental Security Income payment; $2.5 billion in temporary welfare payments; $1 billion for home heating subsidies; and $1 billion for community action agencies.
Education: $41 billion in grants to local school districts; $79 billion in state fiscal relief to prevent cuts in state aid; $21 billion for school modernization; $16 billion to boost the maximum Pell Grant by $500; $2 billion for Head Start.
Health care: $39 billion to subsidize health care insurance for the unemployed and provide coverage through Medicaid; $90 billion to help states with Medicaid; $20 billion to modernize health information technology systems; $4 billion for preventative care; $1.5 billion for community health centers.
Housing: $13 billion to repair and make more energy efficient public housing projects, allow communities to buy and repair foreclosed homes, and help the homeless.
Law enforcement: $4 billion in grants to state and local law enforcement.
Spending overview from Appropriations <http://online.wsj.com/public/resources/documents/AmericanReinvestment2009115.pdf
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TAXES
Individuals: $500 per worker, $1,000 per couple tax cut for two years, costing about $140 billion; greater access to the $1,000 per-child tax credit for the working poor; expanding the earned-income tax credit to include families with three children; a $2,500 college tuition tax credit; repeals a requirement that a $7,500 first-time homebuyer tax credit be paid back over time.
Businesses: An infusion of cash into money-losing companies by allowing them to claim tax credits on past profits dating back five years instead of two; bonus depreciation for businesses investing in new plants and equipment; a doubling of the amount small businesses can write off for capital investments and new equipment purchases; allows businesses to claim a tax credit for hiring disconnected youth and veterans.
Rangel's Ways & Means Committee tax-cut overview <http://wsj.com/public/resources/documents/waysmeans1152009.pdf>