Washington, DC -- Today, President Obama signed into law the American Recovery and Reinvestment Act of 2009. This stimulus bill represents the latest and largest effort by the federal government to boost the deteriorating economy. (For details of all efforts to date, see www.usbudgetwatch.org/stimulus).

The Committee for a Responsible Federal Budget (CRFB) has released an analysis of the law which breaks down the composition of the package, discusses the spend-out rates of various provisions and examines effects on the budget and the economy in the short-run and the long-run. The analysis is available at http://www.usbudgetwatch.org/files/crfb/StimulusAnalysis_1.pdf

According to CRFB, the $787 billion includes $501 billion in increased spending and $286 billion in tax cuts over ten and a half years. The larger provisions of the stimulus include a $400 per person "Making Work Pay" tax credit, a one-year patch for the Alternative Minimum Tax (AMT), an expansion of food stamps and unemployment benefits, funding for infrastructure projects, increased spending on health care and education, and additional aid to states and individuals.

"The Committee for a Responsible Federal Budget is hopeful that the passage of the stimulus bill, along with other efforts, will help put the economy on a path toward recovery. Most economists believe that the bill will provide at least some short-term boost to the macroeconomy, improving both GDP and employment over the next few years," the analysis concludes. "Over the long-run, however, the new debt created from the stimulus -- especially if accompanied by deficit-financed renewal of some provisions -- will become a burden, creating a significant drag on the economy. To ensure sustained economic growth, policymakers must begin to deal with this debt and address the long-term fiscal gap more broadly once the economy recovers."

The Committee for a Responsible Federal Budget is a bipartisan organization committed to educating policy makers and the public about issues related to fiscal policy. The Committee is located at the New America Foundation. Please visit www.crfb.org.