Will the New Stimulus Bill Stimulate Anything?

Will the New Stimulus Bill Stimulate the Economy?

We have been waiting for "The Stimulus Bill of 2009". The bill to stimulate the economy during the horrible, slow recession that feels more like a depression for many. We have elected our local, state and national representatives to represent us, the people. What we have asked for is "change" Change we can believe in. Currently, we are still giving the new administration time to settle and meet feverishly with advisors and experts.

What Does the Proposed Stimulus Bill Currently look like now?
Create a 4% Mortgage
Senate Republicans are pushing for lenders to offer a 30%-year fixed mortgage for a limited period of time. That sounds a little like the adjustable mortgages that got a lot of people into this mess! The cost of such a provision hasn't been determined yet, but the aide said Senate Republicans would seek to structure the proposal in a fiscally responsible way, without specifying exactly what that meant.

Expand home buyer credit: Senate Budget Committee Chairman Kent Conrad, D-N.D., said last week he would propose an expansion of a temporary $7,500 first-time home buyer credit. He stated that it needed to apply to all purchases of primary residences. Some Republican senators have called for an increase in the credit to $15,000.

Moratorium on Foreclosures
Senate Banking Committee Chairman Christopher Dodd, D-Conn., told reporters last week that he would like a provision in the stimulus package that would impose a 90-day moratorium on foreclosures. Hopes are that homeowners and lenders would use that time to modify loans.

Most importantly, there is way too much pork in the bill. Some things are needed, some are not. Here is a breakdown as it stands now:

$87 billion for Medicare outlays and related spending
$20 billion toward nutrition assistance program (food stamps)
$2.8 billion to expand broadband Internet service in rural areas
$4 billion for programs "to develop rural communities..."
$3 billion for grants to improve the criminal justice system
$3 billion for grants to fund science and technology research
$1 billion for periodic censuses and programs
$1 billion for programs of the National Oceanic and Atmospheric
Administration
$1 billion for the Community Oriented Policing Services program
$2 billion for "other activities"
$4 billion to the Department of Defense to repair, maintain, and renovate its facilities; for energy-efficiency projects, including the modernizing of heating/cooling and electrical systems; and for improving
Army barracks
$43.9 billion for the Department of Energy (DOE),
$4.5 billion for the Army Corps of Engineers
$500 million for the Bureau of Reclamation
$8.7 billion to promote energy efficiency and conservation at federal facilities and to support small businesses
$1.1 billion for a variety of programs administered by the Department of Homeland Security
$8.4 billion for the Clean Water and Drinking Water State Revolving Funds (SRFs)
$6.6 billion would fund various programs, including capital improvements and maintenance for the Forest Service and National Park Service, the Superfund program, and wildland fire management
$20.4 billion for programs administered by the Department of Health and Human Services
$4.6 billion for employment and training programs administered by the
Department of Labor
$20 billion to renovate elementary and secondary schools
$17.6 billion for Pell grants and other student financial assistance and facilities at post-secondary institutions including federal student loan programs
$29.1 billon for other education programs aimed particularly at elementary and secondary education
$6.0 billion for military construction projects of the Department of Defense
$1 billion for the Department of Veteran Affairs (VA) to maintain and repair VA medical facilities and cemeteries
$276 million would be provided to the Capital Investment Fund for specific information-technology (IT) projects
$224 million would be provided for construction requirements of the International Boundary and Water Commission, United States and Mexico
$30 billion for highway construction
$13.1 billion for other transportation programs administered by DOT
$11.2 billion for housing assistance programs administered by HUD
$5.2 billion for grants to states and cities for activities related to community development
$41.2 billion per year for 10 highway programs at the state and local level
$10.4 billion per year for transit programs at the state and local level
$39.5 billion available to states each twice a year to help them balance their books
$7.5 billion in each year would be reserved for incentive grants to be given to states on a competitive basis in fiscal year 2010, based on states meeting specified criteria in how they spent their initial allocations
$2.3 billion "emergency" spending for the Temporary Assistance for Needy Families (TANF) program
a variety of tax credits for desired behavior
additional unemployment benefits