About the American Recovery and Reinvestment Act
The American Recovery and Reinvestment Act (ARRA) is an unprecedented effort to jump-start our economy, create or save millions of jobs, and put a down payment on addressing long-neglected challenges so our country can thrive in the 21st century. The Act is an extraordinary response to a crisis unlike any since the Great Depression. With much at stake, the Act provides for unprecedented levels of transparency and accountability so that you will be able to know how, when, and where your tax dollars are being spent.
Federal agencies will allocate ARRA funds in 5 primary ways:
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By Formula. Certain funds in the Act are allocated by a formula – usually set in law – to states and localities. Examples:
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Medicaid (Federal Medicaid Assistance Percentage payments)
State Fiscal Stabilization Fund
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Highway infrastructure investment
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By Competition. Other programs distribute funding through competitive solicitations. In the coming weeks and months, federal agencies will distribute requests for proposals and convene panels to evaluate applications. Examples of agencies and programs that have or will hold such competitions:
National Institutes of Health
National Science Foundation
Broadband Program
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By Demand. Some programs respond directly to demand from eligible individuals:
Premium Subsidies for COBRA Continuation Coverage
Unemployment Insurance
Education Pell Grants
Food Stamps (SNAP)
Small Business Loans
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By One-Time Automatic Disbursement. ARRA includes some one-time benefits, such as payments of $250 to Social Security, Veterans and Supplemental Security Income beneficiaries.
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By Agency Plan. Many ARRA programs distribute funding according to public operating and spending plans. Some programs:
Environmental cleanup of nuclear waste sites
National parks construction
Defense and veterans infrastructure programs
