Parsing the Details of President Obama’s 2009 Stimulus Bill

Holding true to his promise of changing the country, President Barack Obama hit the ground running on his first full day as leader of the free world by meeting with his economic team to discuss the proposed $825 billion stimulus bill.

The bill intends to boost the economy through public works projects like roads, bridges and repairs of public housing. The package also includes a $500 tax cut for 95 percent of workers; a $7,500 tax credit for first-time home buyers purchasing homes between January 1 and June 30; and spares local school districts severe cuts as state and local governments’ budgets swell to deficits of $120 billion over the next two years.

States would also get $87 billion worth of help with their Medicaid budgets over the next two years. The plan will even put money into sod for the National Mall and help to bring Americans up-to-speed with digital cable.

During his inauguration address, President Obama mentioned the stimulus plan as a beacon of hope for citizens. "The state of the economy calls for action, bold and swift, and we will act -- not only to create new jobs, but to lay a new foundation for growth," he said.

Though the bill is intended to boost the economy, there is still hesitation among some politicians.

Although behind the plan, House Appropriations Committee Chairman David Obey, D-Wis., believes that money will not flow into the economy immediately, claiming that more is needed. He said, “It may undershoot the mark and we may have to make adjustments down the line.”

A republican on the House Appropriations Committee said, “This legislation appears to blanket government programs in spending with little thought toward real economic results, job creation or respect for the taxpayer.”

Republicans are still not in favor with the bill and have scheduled to meet with the President next week to discuss their opposition.

Congress is pushing to have the plan on President Obama’s desk by mid-February.  

On Wednesday, the House Appropriations committee approved $358 billion in spending related to the stimulus package. On Thursday, The House Ways and Means Committee approved $275 billion in tax cuts and the House Energy and Commerce Committee also cleared $2.8 billion to expand broadband communications service.

The Senate version of the tax cutting portion of the bill is expected to be unveiled Friday by Senate Finance Committee Chairman Max Baucus.