American Recovery and Reinvestment Act

The American Recovery and Reinvestment Act of 2009, P.L. 111-5 (known by many names—the "Stimulus Package," "ARRA," or the "Recovery Act") was signed into law on Feb. 17, 2009. The purpose of the $787 billion recovery package is to jump-start the economy and create and save jobs. It provides tax relief and increases or extends health benefits, unemployment benefits and renewable energy incentives. It also specifies appropriations for a wide range of federal programs targeted at infrastructure development and enhancement. Construction and repair of roads and bridges, as well as scientific research and the expansion of broadband and wireless service are among the many projects that the Recovery Act funds.

But these funds come with many strings. Projects funded under the Recovery Act are subject to unprecedented levels of transparency and accountability. The Recovery Act requires extensive reporting from the prime recipients. Special terms and conditions are included in covered contracts to track, monitor and report on how taxpayer funds are spent. Many private companies are unaccustomed to sharing their internal data, including allowing the world (not to mention customers and competitors) to see how much their top executives are paid. The Recovery Act also includes Buy American Act requirements, extends the reach of Davis-Bacon labor standards, expands access of the GAO and the various offices of Inspectors General to contractor records, and creates an independent board to coordinate and conduct oversight of covered funds to prevent fraud, waste and abuse.

It is important to understand what type of ARRA funding programs are available and the strings that are attached before applying for these funds. Failure to comply with these obligations can result in termination of the contract, return of the funds, suspension or debarment. Projects funded in part by ARRA bond programs are subject to fewer obligations.

  1. Recovery Act Benefits

    What types of awards can you get from the Recovery Act?

    The Recovery Act is structured to allow various types of awards to maximize its goals of improving the economy and creating and preserving jobs. It is divided into two Divisions. Division A appropriates substantial funds through grants, contracts and loans. These awards are made for, among other things, construction, alteration and repair of federal buildings, and for infrastructure projects, such as roads, bridges, public transit, water systems and housing. Division B, in addition to providing tax relief and other benefit programs, creates several new types of tax-exempt and tax credit bonds and expands existing bond programs.

    1. Division A: Grants, Contracts and Loans

      The Recovery Act makes $275 billion available for federal contracts, grants and loans. Twenty-eight different agencies have been allocated a portion of the Recovery funds. The agencies then award funds to state governments or, in some cases, directly to schools, hospitals, contractors or other organizations. The agencies are required to file weekly financial reports on how they are spending the money and their specific activities related to Recovery funds. Direct recipients file quarterly reports on how they are spending the Recovery funds they received.

      As of the most recent quarterly reporting, a total of 470,550 recipient awards have been issued for funds under the Recovery Act

      By far, grants make up a majority of the Recovery Act awards. Grants are awarded for a wide variety of training, preservation, and research and development programs. Grant opportunities can be found on www.grants.gov

      There are many contract opportunities available...

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