How Will Obama's Stimulus Bill Affect America?

After intense negotiations and several false starts, President Barack Obama signed the controversial $787 billion stimulus bill into law on February 17, 2009. Obama is hopeful that the bill, which he has made the centerpiece of his young presidency, will jumpstart America's collapsing economy, but critics (including nearly every Republican in the Senate) see the bill as a waste of taxpayer dollars. Is the stimulus the boost the American economy needs, or will it be the nail in the coffin of our financial future?

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“Recovery Deal Will Spur Clean Energy Economy”
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Recovery Deal Will Spur Clean Energy Economy

Natural Resources Defense Council

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By Wesley Warren, Director of Programs for the NRDC

Congress really got it right with this economic recovery package that will deliver jobs and green infrastructure to America. The bill makes smart investments that will jumpstart the economy, help sustain future growth, and meet the challenges of the 21st century. We need to put America on a path to a clean-energy economy, and Congress has taken a big step forward in heeding this call.

The recovery package includes bold investments for renewable energy and efficiency, including weatherization programs that will save consumers billions while creating up to 90,000 jobs. Renewable energy grants will help struggling businesses cope with the economic climate and advance technology that harnesses the power of the wind and sun.

Repairing our nation’s outdated and corroded water and waste systems will create more than 200,000 jobs and improve the safety of our beaches, streams, and drinking water.

Transit investments put a down payment on transforming America’s transportation system, and create 19 percent more jobs than traditional highway spending. This is why America should prioritize fixing our crumbling roads and bridges and building rail systems, rather than new highways.

The economic recovery package reflects the commitment by Congress to fulfill President Obama’s vision for a clean energy future. It's a victory for the environment that will help pull our nation out of this economic slump.”

Here are funding levels and key changes in the conference report:

$50 billion for loan guarantees for liquid coal and nuclear energy has been removed from the bill

The bill provides:

$6 billion for clean and safe water, creating more than 200,000 jobs

$4.5 billion for greening federal buildings

State energy grants, issued through the Treasury Department, that will fund renewable energy projects that are eligible for the available tax credits

Funding for the state energy program, which includes important utility reforms and building code conditions

$2.5 billion for energy efficiency and renewable energy Research and Development

$5 billion for the Weatherization Assistance Program, creating approximately 90,000 jobs

A multi-year extension of the renewable production tax credit

A more effective tax credit for home efficiency upgrades

$6 billion in loan guarantees for renewables, transmission and leading edge biofuels

$2 billion for advanced batteries

$9.3 billion for intercity rail, including high-speed rail

$27.5 billion for highways (this large pot of money is not exclusively for highways, and states and cities must use this flexibility to invest in fuel-efficient public transportation)