American Recovery and Reinvestment Act of 2009 Facts for Kids

The American Recovery and Reinvestment Act of 2009, often called the stimulus bill or stimulus package, was a big spending plan. The U.S. Congress passed it in 2009. It was one of the first major actions taken by Barack Obama when he became president.

The country was going through a tough time with the economy. Many people were losing their jobs. The idea behind the stimulus bill was to "stimulate" or boost the economy. It aimed to create jobs and help people and businesses. Even though President Obama tried to get support from both Republicans and Democrats, only three Republicans voted for the bill.

The bill did several important things to help the economy:

It gave more money to people who were unemployed (had no jobs) for a longer time. This helped families pay for basic needs.
It cut taxes for workers, students, and middle-class families. This meant people had more money in their pockets to spend.
It gave more money to Medicaid. This program helps provide healthcare for people with low incomes.
It gave money to improve roads and bridges across the U.S. This created jobs for construction workers.
It gave millions of dollars to various government agencies, including the National Endowment for the Arts. This helped support different public services and projects.

It took some time for all the money from the stimulus bill to be used. Vice President Joe Biden was one of the people in charge. His job was to make sure the money was spent correctly and wisely.

Images for kids

Official seal of Recovery.gov, the official site of the American Recovery and Reinvestment Act of 2009.
President Barack Obama signs the ARRA into law on February 17, 2009 in Denver, Colorado. Vice President Joe Biden stands behind him.
President Barack Obama speaks about the 2,000th project approved through the ARRA. The president is joined by Vice President Joe Biden and Secretary of Transportation Ray LaHood.
Composition of the Act: Tax incentives – includes $15 B for Infrastructure and Science, $61 B for Protecting the Vulnerable, $25 B for Education and Training and $22 B for Energy, so total funds are $126 B for Infrastructure and Science, $142 B for Protecting the Vulnerable, $78 B for Education and Training, and $65 B for Energy. State and Local Fiscal Relief – Prevents state and local cuts to health and education programs and state and local tax increases.
More than 11% of the total bill is allocated to help states with Medicaid
Secretary of Education Arne Duncan and New York City Mayor Michael Bloomberg visit with students at Explore Charter School.
Payments to Social Security recipients and people on Supplemental Security Income were parts of the ARRA.
Road and highway construction is the biggest single line infrastructure item in the final bill. Projects funded by the ARRA have a sign marking them, like this one in Middletown, Rhode Island.
Sign for an ARRA funded road-widening project on State Highway 9 north of Breckenridge, Colorado.
Federal Communications Commission (FCC) map showing the availability of broadband internet access in the U.S.
Loans and investments into green energy technology are a significant part of the final bill
NASA is among the government agencies receiving additional funds under the Act
President Obama in Ohio on March 6, 2009, for the graduation of the Columbus Police Division's 114th Class
President Barack Obama announces the creation of the Economic Recovery Advisory Board on February 6, 2009.
CBO estimates of the impact of the stimulus on GDP
Recovery.gov , the website created for this Act.
A recovery.gov plaque on public transport in Miami
Chart of BLS job-loss data based on OFA's chart.
President Barack Obama and Vice President Joe Biden speak to state legislators about the implementation of the Recovery Act on March 20, 2009.

American Recovery and Reinvestment Act of 2009 facts for kids

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