|Stimulus Bill: House-Senate Conference Agreement||Treasury's Comprehensive Financial Stability Plan|
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Note: The House and Senate are in recess the week of February 16, 2009 for President's Day Recess.
Track 1- Economic Stimulus (Feb):
Track 2 - Completion of '09 Appropriations (Feb):
Track 3 - FY 2010 Budget:
Track 4 - Stabilizing the Financial, Housing, and Auto Sectors (Ongoing)
Today the House passed a $787 billion House-Senate compromise on the economic stimulus bill (HR 1), by a party-line vote of 246-183. (All Republicans and 7 Democrats voted against the final bill.)
The Senate is expected to pass the bill later this afternoon, clearing it for the President's signature.
According to estimates by the nonpartisan Congressional Budget Office (CBO), the bill's spending and tax provisions will cost $185 billion over the remainder of 2009, $399 billion in 2010, $134 billion in 2011, and $787 billion over fiscal years 2009-2019. Approximately 3/4 of the bill's spending and tax cuts will occur by the end of FY 2010 -- the target the Administration had been aiming for.
In a letter analyzing the likely economic effects of the stimulus bill, CBO estimated that "in the short run the stimulus legislation would raise GDP and increase employment by adding to aggregate demand and thereby boosting the utilization of labor and capital that would otherwise be unused because the economy is in recession. Most of the budgetary effects...would occur over the next few years, and as those effects diminished the short-run impact on the economy would fade....In contrast to its near-term macroeconomic effects, the legislation wold reduce output slightly in the long run....The principal channel for this effect is that the legislation would result in an increase in government debt. To the extent that people hold their wealth as government bonds rather than in a form that can be used to finance private investment, the increased debt would tend to reduce the stock of productive private capital...the debt would 'crowd out' private investment."
Following are links to bill summaries, CBO and JCT estimates, bill text, and report language.
On Tuesday, Secretary of the Treasury Timothy Geithner released the outlines of a sweeping Financial Stability Plan.
Highlights of the plan: