The $787 billion American Recovery and Reinvestment Act, which was signed into law on February 17, 2009, will impact many businesses in various industries. It is estimated that the Recovery Act will create or save approximately 3.6 million jobs. Companies should be positioning themselves today to benefit from this money in the coming months. Here is a big picture look of what the Recovery Act contains.
Tax Cuts - $288 billion including tax credits for 95% of working Americans and a number of business credits that encourage companies to upgrade their technology and infrastructure.
State/Local Funding - $144 billion will be used to prevent state and local budget cuts to education and health care programs.
Infrastructure & Science - $111 billion will be targeted to improvements to highway systems, bridges and rail systems and to fund an expansion of the broadband network to rural areas.
Protecting the Vulnerable - $81 billion will provide healthcare to at-risk populations and improve educational and job opportunities in low-income areas. In addition, funds are allocated to subsidize COBRA benefits, improve low-income housing and to provide a child tax credit to working families.
Healthcare - $59 billion will help computerize health records and support new health centers around the country. These centers are estimated to create over 5,000 new jobs and provide healthcare to people in need.
Education & Training - $53 billion is earmarked to protect education jobs at risk and to provide increased funding for construction to complete school modernization projects. It will also invest in programs designed to promote the hiring and training of high-quality teachers.
Energy - $43 billion is committed to revitalize the country’s renewable and alternative energy sources.
Other - $8 billion is earmarked for those necessary projects that do not fall under the general categories above.
What should you be doing now as an employer? Here is a checklist:
- Visit recovery.gov to get an idea of the types of projects that are likely to be initiated in your local area.
- Visit grants.gov, govloans.gov, and fbo.gov (Federal Business Opportunities) to identify the federal agencies that are planning projects using Recovery Act money.
- Go to relevant agency websites for more details on specific projects and how to bid for them.
- Update your staffing efforts to prepare for these new opportunities. The time to start planning is now.