President Barack Obama signed the American Recovery and Reinvestment Act (ARRA) into law on February 17, 2009. The ARRA provides $787 billion of federal tax reductions and federal spending increases to accelerate the nations economic recovery and preserve and create jobs. The Congressional Joint Committee on Taxation estimates the act contains $334 billion in tax relief between now and the close of the 2011 federal fiscal year. Individual filers receive a tax reduction of $174 billion; businesses, $90 billion. The alternative minimum tax is also reduced for tax year 2009 at a cost of $70 billion.

The ARRA also provides for $453 billion in additional federal spending. About 20 percent of the additional federal spending goes directly to individuals through increases in spending on programs such as food stamps. The remainder goes to pay for federal projects and to state and local governments.

Utah expects to receive $1.6 billion in direct funding from the federal stimulus bill. Some of this funding can be used to fill state budget gaps but other funds are to be spent on specific programs identified by Congress. Total funding may grow depending on the States success in receiving competitive grants for which there are no specific state allocations. To view the amount of funding that has been allocated to Utah (including tribes and other non-state entities) please review the following information.

To view a breakdown of funding allocation totals, select a link below:

Funding Notifications by Program (State of Utah)
Investments by State - Tabular View (Project specific)

State and local governments in Utah are estimated to be eligible to receive a substantial amount of one-time assistance under the ARRA. Most of the funding that is being provided by ARRA is being distributed by existing funding programs. In some cases, this allows the State to reallocate funds to balance budget shortfalls as long as it is receiving ARRA funds.

The Governor's Office of Planning and Budget is working closely with state and federal agencies to coordinate ARRA fund management.

The federal stimulus package is intended to provide an immediate boost to the economy. It is important to get the money out as quickly as possible to create jobs and help families that have been hit hard by the current recession. To make sure that this happens, Congress has set clear time limits for some pots of money with the requirement that the funds be spent within 90 to 180 days.

The State evaluates each potential funding stream for unintended consequences before funds are applied for. For example, ARRA provided funding for increases in unemployment insurance. However when those funds were first made available, there was concern that they would actually work against the goal of stimulating the economy because it would require an increase in the amount employers would have to provide. The State is carefully evaluating all potential impacts.