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Last year's $787 billion economic stimulus bill is going to be even more expensive — $75 billion more.
Congressional Budget Office says stimulus bill to cost $75 billion more
Associated Press
Wednesday, January 27, 2010
WASHINGTON — Last year's $787 billion economic stimulus bill is going to be even more expensive — $75 billion more.
The Congressional Budget Office says almost half of the additional cost, $34 billion, is because the food stamp program won't be able to take advantage of lower-than-expected inflation rates and will instead have benefits set by the stimulus bill.
Higher unemployment insurance costs added $21 billion, and stimulus-subsidized bonds for infrastructure projects have proven more popular than expected with state and local governments.
The $75 billion increase would erase one-third of the $250 billion in 10-year savings that would come from the partial domestic spending freeze being proposed by President Barack Obama. The boost in unemployment payments alone would more than erase the $10 billion to $15 billion in first-year savings from such a freeze.
The nonpartisan CBO said just a few programs were responsible for most of the $112 billion in stimulus spending from February to October, including Medicaid; a $250 payment to almost 53 million Social Security recipients; Pell Grants; and fiscal relief for state governments. Tax cuts added $88 billion.
The stimulus is expected to add about $400 billion to the deficit in this budget year.
Top Senate Democrats have drafted an $82.5 billion jobs plan that would help small businesses, boost spending on road construction and mass transit, and give local governments money to retain teachers. A draft document obtained by the AP proposes $20 billion for a job creation tax credit and $12.5 billion to retrofit homes and businesses to make them more energy efficient.
http://www.tampabay.com/incoming/congressional-budget-office-says-stimulus-bill-to-cost-75-billion-more/1068422