What You Need To Know About The Obama Economic Stimulus Package

Now that the Obama economic stimulus package has passed, it is time to decide if perhaps it can help you. Just months ago, Congress approved the $787 billion for the package and allocated $185 billion of it for government spending in the year 2009 alone.

A maximum 3.8% GDP growth and the creation of at least two million jobs are two of the goals for the passing of this stimulus package. The government hopes that economic stimulus and a respite from recessionary woes will also result. A bonus ceiling applies to senior-level executives employed by American corporations, as well.

Seven areas are addressed in the Obama economic stimulus package. The areas are Small Business Help, Relief for Families, Improved Education, Modernization of Federal Infrastructure, Alternative Energy Production, Investment in Science Research and Technology, and Expansion of the Healthcare System.

Details on each area and the benefits provided are listed below. No matter your present circumstances, there is bound to be at least one component that may be able to offer personal financial relief.

Small Business Help

oCosting $54 billion, the government is offering tax incentives and additional write-offs to qualifying small businesses

Relief for Families

o$260 billion in total is allocated over the next ten years
oBenefits for the unemployment will be extended; no taxes on the benefits will be assessed for the 2009 benefit year
oTaxpayers will see a reduction of $800 for families and $400 for individuals
oAllowed deduction of new car sales tax
o$250 payment for recipients of Social Security benefits, SSI benefits, or veteran's pension
o2009 first time homebuyers get an $8,000 tax credit
oExpanded earned income and child tax credits

Improved Education

oSpecial education programs are allocated $12 billion
oHead Start curriculum is allocated $13 billion
oState school districts can receive up to $54 billion
oModernizing school facilities is allocated $21 billion
o$17 billion additional Pell grant funding

Modernization of Federal Infrastructure

oMass transit and transportation projects will receive $46 billion
oFederal buildings to be modernized to the tune of $31 billion
o$6 billion for waterway and water supply projects

Alternative Energy Production

o$17 billion in tax cuts extended for those using renewable energy sources
o$5 billion in tax cuts for home weatherization initiatives

Investment in Science Research and Technology

oAllocation of $10 billion towards science facilities
o$4 billion for broadband infrastructure advancements
oPhysics and science research will receive $4 billion

Expansion of the Healthcare System

oAssisted COBRA benefits for the unemployed will add up to $24 billion
oState-level Medicaid recipients will receive $87 billion
oState Medicaid programs are allocated $10 billion
oIT systems modernization at healthcare facilities is allocated $17 billion

Earlier in the year, homeowners received some additional benefits. Home foreclosures were banned for the rest of 2009 and some relief given to mortgagees struggling to make their monthly loan payments.

The Obama economic stimulus package was meant to provide financial assistance to Americans in these troubling economic times. Chances are you qualify for at least one, if not more, relief initiatives outlined in the plan.