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Obama Unveils Economic Recovery Plan

January 8, 2009—Today, during his speech from George Mason University, President-Elect Obama revealed key elements of his administration's economic stimulus package, the American Recovery and Reinvestment Plan. While job creation and tax relief are the main focus, there are a provisions related to education.

First, as mentioned in previous communications, the plan asks for $25 billion to go toward school repair and rebuilding roads and bridges. Moreover, Obama would like to make next-generation broadband available in every community. Second, in line with his administration's overall goal to ensure that America's youth are ready for the workforce, the recovery package calls for an energy-focused youth jobs program to invest in disconnected and disadvantaged youth. The Obama-Biden administration also plans to change the federal government so that it embraces science and technology, ensuring the competitiveness of U.S. technology-based businesses and the growth of 21st century jobs in America. Finally, there are provisions to double funding for the main federal support for afterschool programs, the 21st Century Learning Centers program, to serve a million more children.

In addition, publishers should take note of the many business-related tax relief provisions, including:

• Raising the small business investment expensing limit to $250,000 through the end of 2009
• Zero capital gains rate for investment in small businesses
• Tax incentives for companies that hire new workers
• Making credit available to small businesses and state or local governments
• Ending tax breaks for companies that send jobs overseas and reward companies that support American workers

While the Obama-Biden administration would like to keep the price tag below $1 trillion, the estimated cost does not include any provisions from the new Congress. National education groups sent in their recommendations for the recovery plan, including $3 billion for a temporary fund for school districts to spend for activities already authorized under No Child Left Behind (NCLB) or the Individuals With Disabilities Education Act (IDEA), and a one-time grant, direct aid to local school districts, to prevent elimination of staff positions.

In addition, the Democratic governors of five states--New York, New Jersey, Massachusetts, Ohio, and Wisconsin--led by former U.S. Senator and present New Jersey Governor Jon S. Corzine, asked the federal government and Congress for an economic recovery package of $1 trillion. One of their key items is $250 billion in flexible education spending to maintain funding for programs from pre-kindergarten to higher education.

For more information

American Recovery and Reinvestment Plan

"As Outlook Dims, Obama Expands Recovery Plans"
The New York Times

"Obama Considers Major Expansion in Aid to Jobless"
The New York Times

"Education Groups Compete for Piece of Stimulus Package"
CQ POLITICS

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