The American Recovery and Reinvestment Act of 2009, Pub. L. No.111-5, 123 Stat. 115 (2009). (“Recovery Act”), provides for the Federal Government to conduct the purchase of goods and services, an estimated value of $787 billion over the next several years. For practical purposes, it is viewed as a nationwide effort to create jobs, jumpstart growth and transform the economy for the 21^st century. In addition, it is designed to save jobs, help state and local governments, invest in economic growth areas, and provide accountability and transparency. Federal Departments and Agencies have initiated and/or awarded grants and contracts.

The Recovery Act also provides purchase authority to state and local governments with ARRA funds. It is estimated that the majority of the ARRA funds will be allocated to state and local governments. A significant portion of ARRA funding provided to states and localities in FY 2009 will be through health, transportation and education programs. Within these categories, the three largest programs are increased Medicaid Federal Medical Assistance Percentage grant awards, funds for highway infrastructure investment, and the State Fiscal Stabilization Fund (Education).