Stimulus Bill: House & Senate

Over the past several weeks, the two sides of Congress have been developing two related but distinct versions of the Stimulus bill.

The House plan totals $819 billion and includes:

• $637 billion in spending; $182 billion in tax cuts
• $80 billion in state stabilization to assist states with budget problems
• $91.3 billion in education (spending), including $20 billion to renovate schools and $17 for student grants
• ~$135 billion for unemployed assistance and increases in federal Medicaid assistance (tax cuts)
• $82.1 billion in additional tax credits, which combined with the Medicaid assistance provides for a credit of the earned income tax for some taxpayers (tax cuts)

The $827 billion Senate plan is similar, but some notable differences include:

• ~$100 less in spending, including less allocated to renewable energy
• ~$100 more in tax cuts, including tax credits for buyers of new cars and for buyers of any primary residence

Some notable features of both plans:

• The Congressional Budget Office estimates that it will take years for the entire stimulus to filter through the economy, with the spending portions being the slowest. About $525 billion, or 64% of the House's total plan, will make it into the economy within a year and a half. The majority will make it into the economy by 2014.
• Infrastructure spending on "shovel-ready" projects (at about ~$50 billion) is a relatively modest percentage of the entire stimulus package.
• State stabilization may be the most important element of either plan: the states are in such poor shape that $80 billion is needed to simply stop the cuts in jobs and services right now.
  

A graphical look at the House Plan.