825 Billion Economic Stimulus Includes Funding for Energy, Tax Cuts
With unemployment approaching the double-digits and the economy in the worst condition it has seen "since the great depression" (to quote some alarmed economists), pressure is mounting on the Congress to act. The incoming Obama administration wanted a bill ready for the President-elect to sign once he takes office next week, but concerns over the price tag of a proposed stimulus--which is estimated at more than $825 billion--is stirring opposition from spending hawks in Congress. And while Republicans have slammed Democrats for both a closed-door drafting process and the price-tag, they have expressed a desire to work with the incoming administration in order to provide some relief to the troubled economy and struggling Americans. A bill is not likely before sometime in February, at the earliest.
The bill's price tag breaks down to $550 billion for spending programs, with over $300 billion going to state and local governments for spending projects including transportation, community construction projects, school and public building repairs and the like. About another $100 billion will be provided for unemployment assistance and welfare services and programs. There would be a $275 billion tax-cut mainly benefiting middle-class Americans. The bill also provides $58 billion in energy-related spending.