policy paper
Geer Long
Bus 102
Section 121
07/08/2016
Policy Paper Proposal: The American Recovery and Reinvestment Act of 2009
Rationale: The American Recovery and Reinvestment Act of 2009, also known as the Recovery Act, was signed into law by President Obama on February 17, 2009. This law was enacted in response to an economic recession and was designed to create jobs and stimulate growth in the economy. It provided tax incentives, direct government grants and spending, and welfare provisions such as an expansion of unemployment benefits, among other policies. The law also was intended to improve infrastructure and help in the development of new technologies.
Stakeholders: The stakeholders involved in this legislation included almost all citizens and businesses in the United States, directly or indirectly. For example, many businesses gained tax breaks or benefited from government spending. The unemployed benefited from receiving more benefits. Indirectly, many citizens may also have received employment opportunities or continued employment because of the programs funded by this law. Taxpayers were also stakeholders because they paid for the cost of the stimulus.
Effectiveness of Law: The efficacy of the stimulus has been debated, and it is also subject to speculation because it is difficult to know how the economy would have done without it. However, most economists seem to conclude that overall this law had a positive effect on the economy and reduced the effect of the recession. The main debate seems to be about whether the effect was very strong or long-lasting. Overall, it appears that the law did achieve its objectives in helping to reduce the impact of the recession and also in helping to build and repair necessary infrastructure as well as promote the development of new technologies, and so the law can be considered a modest success.
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 115
Public Law 111–5
111th Congress
An Act
Making supplemental appropriations for job preservation and creation, infrastructure
investment, energy efficiency and science, assistance to the unemployed, and
State and local fiscal stabilization, for the fiscal year ending September 30,
2009, and for other purposes.
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘American Recovery and Reinvestment
Act of 2009’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents for this Act is as follows:
DIVISION A—APPROPRIATIONS PROVISIONS
TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION,
AND RELATED AGENCIES
TITLE II—COMMERCE, JUSTICE, SCIENCE, AND RELATED AGENCIES
TITLE III—DEPARTMENT OF DEFENSE
TITLE IV—ENERGY AND WATER DEVELOPMENT
TITLE V—FINANCIAL SERVICES AND GENERAL GOVERNMENT
TITLE VI—DEPARTMENT OF HOMELAND SECURITY
TITLE VII—INTERIOR, ENVIRONMENT, AND RELATED AGENCIES
TITLE VIII—DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES,
AND EDUCATION, AND RELATED AGENCIES
TITLE IX—LEGISLATIVE BRANCH
TITLE X—MILITARY CONSTRUCTION AND VETERANS AFFAIRS AND RELATED
AGENCIES
TITLE XI—STATE, FOREIGN OPERATIONS, AND RELATED PROGRAMS
TITLE XII—TRANSPORTATION, HOUSING AND URBAN DEVELOPMENT, AND
RELATED AGENCIES
TITLE XIII—HEALTH INFORMATION TECHNOLOGY
TITLE XIV—STATE FISCAL STABILIZATION FUND
TITLE XV—ACCOUNTABILITY AND TRANSPARENCY
TITLE XVI—GENERAL PROVISIONS—THIS ACT
DIVISION B—TAX, UNEMPLOYMENT, HEALTH, STATE FISCAL RELIEF, AND
OTHER PROVISIONS
TITLE I—TAX PROVISIONS
TITLE II—ASSISTANCE FOR UNEMPLOYED WORKERS AND STRUGGLING
FAMILIES
TITLE III—PREMIUM ASSISTANCE FOR COBRA BENEFITS
TITLE IV—MEDICARE AND MEDICAID HEALTH INFORMATION TECHNOLOGY;
MISCELLANEOUS MEDICARE PROVISIONS
TITLE V—STATE FISCAL RELIEF
TITLE VI—BROADBAND TECHNOLOGY OPPORTUNITIES PROGRAM
TITLE VII—LIMITS ON EXECUTIVE COMPENSATION
SEC. 3. PURPOSES AND PRINCIPLES.
(a) STATEMENT OF PURPOSES. —The purposes of this Act include
the following:
American
123 STAT. 116 PUBLIC LAW 111–5—FEB. 17, 2009
(1) To preserve and create jobs and promote economic
recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic
efficiency by spurring technological advances in science and
health.
(4) To invest in transportation, environmental protection,
and other infrastructure that will provide long-term economic
benefits.
(5) To stabilize State and local government budgets, in
order to minimize and avoid reductions in essential services
and counterproductive state and local tax increases.
(b) GENERAL PRINCIPLES CONCERNING USE OF FUNDS. —The
President and the heads of Federal departments and agencies shall
manage and expend the funds made available in this Act so as
to achieve the purposes specified in subsection (a), including commencing
expenditures and activities as quickly as possible consistent
with prudent management.
SEC. 4. REFERENCES.
Except as expressly provided otherwise, any reference to ‘‘this
Act’’ contained in any division of this Act shall be treated as
referring only to the provisions of that division.
SEC. 5. EMERGENCY DESIGNATIONS.
(a) IN GENERAL. —Each amount in this Act is designated as
an emergency requirement and necessary to meet emergency needs
pursuant to section 204(a) of S. Con. Res. 21 (110th Congress)
and section 301(b)(2) of S. Con. Res. 70 (110th Congress), the
concurrent resolutions on the budget for fiscal years 2008 and
2009.
(b) PAY-AS-YOU-GO. —All applicable provisions in this Act are
designated as an emergency for purposes of pay-as-you-go principles.
DIVISION A—APPROPRIATIONS
PROVISIONS
That the following sums are appropriated, out of any money in the Treasury not otherwise appropriated, for the fiscal year ending September 30, 2009, and for other purposes, namely:
TITLE I—AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND RELATED AGENCIES
DEPARTMENT OF AGRICULTURE AGRICULTURE BUILDINGS AND FACILITIES AND RENTAL PAYMENTS
For an additional amount for ‘‘Agriculture Buildings and Facilities
and Rental Payments’’, $24,000,000, for necessary construction,
repair, and improvement activities.
OFFICE OF INSPECTOR GENERAL
For an additional amount for ‘‘Office of Inspector General’’,
$22,500,000, to remain available until September 30, 2013, for
1 USC 1 note.
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 117
oversight and audit of programs, grants, and activities funded by
this Act and administered by the Department of Agriculture.
AGRICULTURAL RESEARCH SERVICE
BUILDINGS AND FACILITIES
For an additional amount for ‘‘Buildings and Facilities’’,
$176,000,000, for work on deferred maintenance at Agricultural
Research Service facilities: Provided, That priority in the use of
such funds shall be given to critical deferred maintenance, to
projects that can be completed, and to activities that can commence
promptly following enactment of this Act.
FARM SERVICE AGENCY
SALARIES AND EXPENSES
For an additional amount for ‘‘Farm Service Agency, Salaries
and Expenses,’’ $50,000,000, for the purpose of maintaining and
modernizing the information technology system.
NATURAL RESOURCES CONSERVATION SERVICE
WATERSHED AND FLOOD PREVENTION OPERATIONS
For an additional amount for ‘‘Watershed and Flood Prevention
Operations’’, $290,000,000, of which $145,000,000 is for necessary
expenses to purchase and restore floodplain easements as authorized
by section 403 of the Agricultural Credit Act of 1978 (16
U.S.C. 2203) (except that no more than $30,000,000 of the amount
provided for the purchase of floodplain easements may be obligated
for projects in any one State): Provided, That such funds shall
be allocated to projects that can be fully funded and completed
with the funds appropriated in this Act, and to activities that
can commence promptly following enactment of this Act.
WATERSHED REHABILITATION PROGRAM
For an additional amount for ‘‘Watershed Rehabilitation Program’’,
$50,000,000: Provided, That such funds shall be allocated
to projects that can be fully funded and completed with the funds
appropriated in this Act, and to activities that can commence
promptly following enactment of this Act.
RURAL HOUSING SERVICE
RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT
For an additional amount for gross obligations for the principal
amount of direct and guaranteed loans as authorized by title V
of the Housing Act of 1949, to be available from funds in the
rural housing insurance fund, as follows: $1,000,000,000 for section
502 direct loans; and $10,472,000,000 for section 502 unsubsidized
guaranteed loans.
For an additional amount for the cost of direct and guaranteed
loans, including the cost of modifying loans, as defined in section
502 of the Congressional Budget Act of 1974, as follows: $67,000,000
123 STAT. 118 PUBLIC LAW 111–5—FEB. 17, 2009
for section 502 direct loans; and $133,000,000 for section 502 unsubsidized
guaranteed loans.
RURAL COMMUNITY FACILITIES PROGRAM ACCOUNT
For an additional amount for the cost of direct loans and
grants for rural community facilities programs as authorized by
section 306 and described in section 381E(d)(1) of the Consolidated
Farm and Rural Development Act, $130,000,000.
RURAL BUSINESS—COOPERATIVE SERVICE
RURAL BUSINESS PROGRAM ACCOUNT
For an additional amount for the cost of guaranteed loans
and grants as authorized by sections 310B(a)(2)(A) and 310B(c)
of the Consolidated Farm and Rural Development Act (7 U.S.C.
1932), $150,000,000.
RURAL UTILITIES SERVICE
RURAL WATER AND WASTE DISPOSAL PROGRAM ACCOUNT
For an additional amount for the cost of direct loans and
grants for the rural water, waste water, and waste disposal programs
authorized by sections 306 and 310B and described in section
381E(d)(2) of the Consolidated Farm and Rural Development Act,
$1,380,000,000.
DISTANCE LEARNING, TELEMEDICINE, AND BROADBAND PROGRAM
For an additional amount for the cost of broadband loans and
loan guarantees, as authorized by the Rural Electrification Act
of 1936 (7 U.S.C. 901 et seq.) and for grants (including for technical
assistance), $2,500,000,000: Provided, That the cost of direct and
guaranteed loans shall be as defined in section 502 of the Congressional
Budget Act of 1974: Provided further, That, notwithstanding
title VI of the Rural Electrification Act of 1936, this amount is
available for grants, loans and loan guarantees for broadband infrastructure
in any area of the United States: Provided further, That
at least 75 percent of the area to be served by a project receiving
funds from such grants, loans or loan guarantees shall be in a
rural area without sufficient access to high speed broadband service
to facilitate rural economic development, as determined by the
Secretary of Agriculture: Provided further, That priority for
awarding such funds shall be given to project applications for
broadband systems that will deliver end users a choice of more
than one service provider: Provided further, That priority for
awarding funds made available under this paragraph shall be given
to projects that provide service to the highest proportion of rural
residents that do not have access to broadband service: Provided
further, That priority shall be given for project applications from
borrowers or former borrowers under title II of the Rural Electrification
Act of 1936 and for project applications that include such
borrowers or former borrowers: Provided further, That priority for
awarding such funds shall be given to project applications that
demonstrate that, if the application is approved, all project elements
will be fully funded: Provided further, That priority for awarding
Grants.
Loans.
PUBLIC LAW 111–5—FEB. 17, 2009 123 STAT. 11
such funds shall be given to project applications for activities that
can be completed if the requested funds are provided: Provided
further, That priority for awarding such funds shall be given to
activities that can commence promptly following approval: Provided
further, That no area of a project funded with amounts made
available under this paragraph may receive funding to provide
broadband service under the Broadband Technology Opportunities
Program: Provided further, That the Secretary shall submit a report
on planned spending and actual obligations describing the use
of these funds not later than 90 days after the date of enactment
of this Act, and quarterly thereafter until all funds are obligated,
to the Committees on Appropriations of the House of Representatives
and the Senate.
FOOD AND NUTRITION SERVICE CHILD NUTRITION
PROGRAMS
For an additional amount for the Richard B. Russell National
School Lunch Act (42 U.S.C. 1751 et. seq.), except section 21,
and the Child Nutrition Act of 1966 (42 U.S.C. 1771 et. seq.),
except sections 17 and 21, $100,000,000, to carry out a grant program
for National School Lunch Program equipment assistance:
Provided, That such funds shall be provided to States administering
a school lunch program in a manner proportional with each States’
administrative expense allocation: Provided further, That the States
shall provide competitive grants to school food authorities based
upon the need for equipment assistance in participating schools
with priority given to school in which not less than 50 percent
of the students are eligible for free or reduced price meals under
the Richard B. Russell National School Lunch Act.
SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS,
AND CHILDREN (WIC)
For an additional amount for the special supplemental nutrition
program as authorized by section 17 of the Child Nutrition Act
of 1966 (42 U.S.C. 1786), $500,000,000, of which $400,000,000 shall
be placed in reserve to be allocated as the Secretary deems necessary,
notwithstanding section 17(i) of such Act, to support participation
should cost or participation exceed budget estimates, and
of which $100,000,000 shall be for the purposes specified in section
17(h)(10)(B)(ii): Provided, That up to one percent of the funding
provided for the purposes specified in section 17(h)(10)(B)(ii) may
be reserved by the Secretary for Federal administrative activities
in support of those purposes.
COMMODITY ASSISTANCE PROGRAM
For an additional amount for the emergency food assistance
program as authorized by section 27(a) of the Food and Nutrition
Act of 2008 (7 U.S.C. 2036(a)) and section 204(a)(1) of the Emergency
Food Assistance Act of 1983 (7 U.S.C. 7508(a)(1)),
$150,000,000: Provided, That of the funds made available, the Secretary
may use up to $50,000,000 for costs associated with the
distribution of commodities, of which up to $25,000,000 shall be
made available in fiscal year 2009.
