Fiscal Policy

Continuing Extension Act of 2010

Date: 
April 15, 2010
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Other
Action Type: 
Direct Spending
Maximum Amount: 
$13.91 billion
Amount Spent: 
$13.91 billion
Deficit Impact: 
$13.91 billion

The Continuing Extension Act of 2010 extended unemployment benefits for previously unemployed workers for an additional two months, extending the benefit until the beginning of June.

 

Notes: 

None of the provisions of this bill were offset, as they were deemed "emergency" spending to lawmakers which exempts the bill from having to be offset under current PAYGO rules. Thus, the maximum amount and deficit impact reflect cumulative spending and reduced revenue over the 2010-2011 period.

Temporary Extensions Act of 2010

Date: 
March 2, 2010
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Other
Action Type: 
Direct Spending
Maximum Amount: 
$8.02 billion
Amount Spent: 
$8.02 billion
Deficit Impact: 
$8.02 billion

As part of the Temporary Extension Act of 2010, unemployment benefits were extended for another month, raising the maximum number of eligible weeks in which unemployed workers can receive benefits up from 99 to 103.

Extended unemployment insurance benefits were originally passed as part of the American Recovery and Reinvestment Act.

Notes: 

Other minor spending provisions were also included in the legislation. The deficit impact reflects the net change in the deficit from unemployment insurance.

Maximum amount reflects total increased outlays and reduced revenues for the provision over the 2010-2020 period.

Unemployment Insurance Extensions

Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Other
Action Type: 
Direct Spending
Maximum Amount: 
$69.64 billion
Amount Spent: 
$69.64 billion
Deficit Impact: 
$67.06 billion

Several bills since November 2009 have extended the duration in which unemployed workers can receive unemloyment insurance benefits, originally extended as part of the American Recovery and Reinvestment Act. So far, lawmakers have extended unemployment benefits 3 times since ARRA was passed in February 2009, raising the maximum number of eligible weeks from 59 to over 99.

Source: 

 

Notes: 

 

Food Stamps

Date: 
December 24, 2009
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Direct Spending
Maximum Amount: 
$0.50 billion
Deficit Impact: 
$0.50 billion

The Department of Defense appropriations bill contained a provision to extend the Supplemental Nutrition Assistance Program (SNAP), or food stamps, while also providing more funding to help cover state administration costs fo the program and to speed up the processing of applications.

Extended food stamp program funding was originally passed as part of the American Recovery and Reinvestment Act.

Notes: 

Cost reflects the total deficit impact of the provision, calculated by using CBO estimates of extensions from ARRA in the jobs bill (as passed by the House on December 16, 2009, found at http://www.cbo.gov/ftpdocs/108xx/doc10874/hr2847.pdf) but altered to reflect a two month extension in funding for the program.

Extended through Defense Appropriations Bill

Date: 
December 24, 2009
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Direct Spending
Maximum Amount: 
$11.30 billion
Amount Spent: 
$11.30 billion
Deficit Impact: 
$11.30 billion

In the Department of Defense appropriations bill, an additional $13.6 billion in funding for unemployment insurance and benefits was included. The amendment included increased benefits and increased the number of weeks unemployed workers can be eligible for benefits by 20 weeks, from 79 to 99 weeks in the highest unemployment states. Unemployed workers are now eligible to receive 99 weeks of benefits beginning now through February 28, 2010.

Notes: 

Estimates from CBO show a total cost of $11.3 billion for the increase in benefits.

Extended through Defense Appropriations Bill

Date: 
December 24, 2009
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Tax Break
Maximum Amount: 
$6.00 billion
Amount Spent: 
$6.00 billion
Deficit Impact: 
$6.00 billion

As part of the Department of Defense appropriation bill passed in late December 2009, $6 billion was provided for COBRA health insurance subsidies. Under the bill, COBRA subsidies of 65% were expanded from nine to 15 months for recently unemployed workers, bringing the new eligibility threshold date to February 28, 2010. 

Extended COBRA subsidies were originally passed as part of the American Recovery and Reinvestment Act.

Notes: 

Updated estimates from CBO now project lost revenues from the COBRA subsidy to equal $6 billion over the 2010 -2011 period.

Extended Provisions from ARRA and New Stimulus

Who: 
Various Agencies
Policy Area: 
Fiscal Policy
Maximum Amount: 
$140.48 billion
Amount Spent: 
$76.76 billion
Deficit Impact: 
$75.82 billion

Several provisions from the 2009 stimulus bill -- the American Recovery and Reinvestment Act (ARRA) -- have been extended, expanded, and/or modified. And many more are being considered for extension.

Before the passage of the ARRA, CRFB warned that a number of provisions were in danger of being renewed or made permanent, even though they were enacted as temporary measures.

Source: 

Multiple Sources.

Notes: 

Maximum amount is the peak cumulative cost of a provision over the 2010-2019 period. Deficit impact represents ten year costs, net of accompanying offsets. Amount Spent as of 4/16/2010.

Worker, Homeownership, and Business Assistance Act

Date: 
November 6, 2009
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Other
Action Type: 
Direct Spending
Maximum Amount: 
$2.42 billion
Amount Spent: 
$2.42 billion
Deficit Impact: 
-$0.16 billion

This provision would further extend unemployment benefits under the stimulus act, allowing 14 additional weeks of collections across the board. In high unemployment states, this measure will provide 14 extra weeks of benefits for all individuals but 20 for those in the high unemployment states, bringing the total number of weeks to receive unemployment benefits from 59 to 79.

Notes: 

Maximum amount reflects projected cost - which will be spent in 2010. Amount spent currently zero because the measure has just been approved. Deficit impact based on CBO calculation of ten-year deficit impact (http://finance.senate.gov/sitepages/leg/LEG%202009/103009_CBO_Estimates.pdf).

Tax Provisions

Who: 
IRS
Policy Area: 
Fiscal Policy
Economic Target: 
Other Business
Action Type: 
Tax Break
Maximum Amount: 
$420.00 billion
Amount Spent: 
$210.00 billion
Deficit Impact: 
$335.00 billion

Provisions are part of the $787 billion "American Recovery and Reinvestment Act of 2009," a set of policies designed to mitigate the effects of the economic crisis. The act contains significant tax breaks for individuals and corporations, among other spending provisions.

Notes: 

Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is the peak cumulative cost of a provision over the period 2009-2019, though the provision may eventually cost less by 2019. Several tax provisions shift deductions for depreciation or other tax savings into the next several years. These are tax breaks that would normally be written off over a longer period of time. Much of the cost for these provisions is eventually made back in the "out" years, because it is the timing--not the amount--of an existing tax break that is being shifted. Deficit impact is the final cost of a provision from 2009-2019. Amount spent reflects CRFB calculated continuations of tax disbursal rates since last reported on Recovery.gov in April 2010, and extrapolated to the present by CRFB staff.

In the January 2010 baseline (http://www.cbo.gov/ftpdocs/108xx/doc10871/01-26-Outlook.pdf), CBO estimated that an additional $26 billion would be made available for the Build America Bond program under the Infrastructure Financing Tools of the "Other Tax Provisions" category.

Unemployment Trust Fund

Date: 
August 7, 2009
Who: 
Dept. of Labor
Policy Area: 
Fiscal Policy
Economic Target: 
Consumers
Action Type: 
Direct Spending
Maximum Amount: 
$7.50 billion
Amount Spent: 
$7.50 billion

The unemployment trust fund was a risk of running out of money in August 2009. The economic recession has fueled unemployment claims, depleting unemployment budgets in 18 states. With unemployment expected to remain high through the coming months, more states are expected to request loans from the federal unemployment trust fund. The law appropriates $7.5 billion to the unemployment trust fund.

Notes: 

Amount spent reflects the total funds transferred into the unemployment trust fund, all of which the CBO expects the government to spend. Since the $7.5 billion addition by Congress from the general revenue of the Treasury to the trust fund is an intergovernmental transfer, the deficit impact is zero. Also, because states are required under law to cover all unemployment payments, those costs are already assumed under CBO's baseline projections. Thus, the $7.5 billion addition to the trust fund will not increase direct spending relative to the baseline.

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