What is the American Recovery and Reinvestment Act?

How much money is coming to North Carolina?

What is the American Recovery and Reinvestment Act?

On February 17, 2009 President Obama signed into law the American Recovery and Reinvestment Act (ARRA). The act represents a significant investment in our country´s future in the face of the greatest economic crisis since the Great Depression. The White House predicts that the ARRA will create or save three to four million jobs, 90 percent of them in the private sector.

The act provides a total of $789.5 billion in spending and tax cuts over two years. According to the White House the money is distributed like this:

$288 billion ­ Tax Relief
$144 billion ­ State and Local Fiscal Relief
$111 billion ­ Infrastructure and Science
$81 billion ­ Protecting the Vulnerable
$59 billion ­ Health Care
$53 billion ­ Education and Training
$43 billion ­ Energy
$8 billion ­ Other

top

North Carolina is certain to receive billions of dollars from the American Recovery and Reinvestment Act. However, it is currently unclear how much North Carolina will receive after all is finished. Many of the funding formulas have not been finalized and the act also injects additional money into the state through targeted tax cuts, additional grants from federal agencies and direct funding for specific federal programs in the state.

$225 billion of the $789.5 billion total will be awarded to states based on funding formulas. We estimate that North Carolina will receive $6.1 billion of the $225 billion total or about 2.7%.

top