Stimulus.org - Sector Policy (Non-Financial)

Housing Support

Jason Peuquet — Wed, 11 Nov 2009 22:11:19 +0000

Who:

Various Agencies

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Maximum Amount:

232370000000

Amount Spent:

14200000000

Deficit Impact:

17150000000

Beggining in the summer of 2008, the federal government provided support to the housing industry and consumers through a combination of grants, tax breaks, and government guarantees.

Source:

Notes:

Deficit impact based on CBO and JCt estimates of the ten-year budgetary impact of provisions.

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Increase in Low-Income Housing Tax Credit

Jason Peuquet — Wed, 11 Nov 2009 21:56:45 +0000

Housing Starts

Date:

July 23, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

11771000000

Amount Spent:

7630000000

Deficit Impact:

7630000000

This measure increased in 2008 and 2009 the per capita amount of the low-income housing tax credit allocable by each state. In addition, the new rule ignored the distinction between new buildings and existing buildings, allowed buidling receiving moderate rehabilitation assistance to dually qualify for the low-income housing credit, and extended the credit to some eligible students.

The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with the first-time homebuyers tax credit, community housing grants, and the HOPE for Homeowners Program.

Source:

Housing and Economic Recovery Act of 2008

Notes:

Maximum amount reflects the peak cumulative cost of the provision over the 2008-2018 period. Amount spent and deficit impact reflect CBO's estimated ten-year budget impact of the provision (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).

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Tax Credit for First-Time Homebuyers

Jason Peuquet — Wed, 11 Nov 2009 21:41:41 +0000

Housing Starts

Date:

July 23, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

4648000000

Amount Spent:

4648000000

Deficit Impact:

4648000000

This measure provides a $7,500 tax credit for some qualifying first-time homebuyers. The credit will be claimed on tax returns to reduce the home-purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

The measure was passed as part of the Housing and Economic Recovery Act of 2008, along with an increase in the low-income housing tax credit, community housing grants, and the HOPE for Homeowners Program.

See the extension of the homebuyer tax credit in the American Recovery and Reinvestment Act and again in the Worker, Homeownership, and Business Assistance Act of 2009.

Source:

Housing and Economic Recovery Act of 2008

Notes:

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Net Carryback Loss Extension and Expansion

Jason Peuquet — Fri, 06 Nov 2009 22:05:04 +0000

Date:

November 6, 2009

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Tax Break

Maximum Amount:

33197000000

Amount Spent:

33197000000

Deficit Impact:

59000000

This provision would reduce corporate taxes by extending net operating loss carryback rules under the stimulus act from two to five years. This means that, for the purpose of taxation, businesses will be able to subtract losses in 2008 and 2009 from profits over the last five years - and in turn recieve a tax refund. A measure in February's American Recovery and Reinvestment Act increased the carryback loss period from two to five years for small businesses, but this rule now applies to companies of all sizes.

The provision was passed as part of the Worker, Homeownership, and Business Assistance Act of 2009 along with an extension of the homebuyer tax credit and of unemployment benefits.

The provision would cost $33 billion in 2010. However, because it largely defers rather than reduces taxes, it would cost closer to $10 billion over a ten year period. And this cost would be offset -- mainly by delaying, until 2018, a rule to allow the worldwide allocation of interest for the purposes of taxation.

Source:

JCT: Worker, Homeownership, and Business Assistance Act of 2009

CBO: Worker, Homeownership, and Business Assistance Act of 2009

Notes:

Maximum amount reflects the peak total loss in government revenue. Deficit impact based on CBO calculation of ten-year deficit impact (http://finance.senate.gov/sitepages/leg/LEG%202009/103009_CBO_Estimates.pdf).

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First-Time Homebuyer Tax Credit Extension and Expansion

Jason Peuquet — Fri, 06 Nov 2009 21:29:40 +0000

Housing Starts

Date:

November 6, 2009

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

12715000000

Amount Spent:

12715000000

Deficit Impact:

61000000

This provision would further extend and expand the First Time Home Buyer Tax Credit, which was previously extended through November 30, 2009 in February's American Recovery and Reinvestment Act and was originally enacted in the Housing and Economic Recovery Act of 2008. This extension would continue the tax credit of up to $8,000 for housing deals signed by April 30, 2010 and completed by June 30, 2010. It would also expand the credit beyond first-time homebuyers by adding a $6,500 tax credit for homebuyers seeking a new primary residence. Eligible incomes for the full credit have also been modified, rising from a $95,000 or less in yearly income for individuals to $125,000. Additional rules, restrictions, and requirements apply.

The provision was passed as part of the Worker, Homeownership, and Business Assistance Act of 2009 along with an an expansion of net operating loss carryback rules and an extension of unemployment benefits.

It would cost $13 billion through 2011, although some of this would be recovered in subsequent years resulting in a ten year cost of $11 billion. These costs would be offset -- mainly by delaying, until 2018, a rule to allow the worldwide allocation of interest for the purposes of taxation.

Source:

JCT: Worker, Homeownership, and Business Assistance Act of 2009.

CBO: Worker, Homeownership, and Business Assistance Act of 2009

Notes:

Maximum amount reflects the peak total loss in government revenue. Deficit impact equals zero since costs of measure would be fully offset.

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Spending Provisions

Jason Peuquet — Tue, 03 Nov 2009 22:22:42 +0000

Who:

Congress

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Direct Spending

Maximum Amount:

551000000000

Amount Spent:

477502000000

Deficit Impact:

556000000000

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 spending for direct worker assistance, infrastructure, healthcare, education, aid to states, and other areas.

Source:

CBO Analysis of Final Bill

Text of "American Recovery and Reinvestment Act of 2009"

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. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount Spent as of 9/21/2012 (http://www.recovery.gov/?q=/content/agency-summary&agency_code=75).

*In the Budget and Economic Update in August 2009 (http://cbo.gov/ftpdocs/105xx/doc10521/08-25-BudgetUpdate.pdf), CBO estimated that an additional $2 billion would be made available for Medicaid matches, increasing the maximum amount for Health Care Spending.

In the January 2010 baseline, CBO estimated that the total cost of the bill would total $862 billion, after making several upward revisions (including $21 billion more for unemployment insurance, $34 billion more for food stamps, and $3 billion less for Medicaid state matching).

CBO's August 2010 Budget Update re-estimated the total of ARRA, putting the number at $814 billion.

CBO's January 2011 baseline upped the estimate of ARRA slightly to $821 billion.

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FHA Bill

Jason Peuquet — Wed, 19 Aug 2009 19:14:27 +0000

Date:

August 7, 2009

Who:

FHA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Maximum Amount:

185000000000

Amount Spent Special Symbol:

The Federal Housing Administration (FHA) became the main source for home loans to borrowers with poor credit after subprime lending markets collapsed. This bill gives new lending authority to FHA’s mortgage insurance programs that play a large role in providing low-interest housing loans, raising the loan ceiling from $315 billion to $400 billion. Additionally, the bill increases the securities guarantee authority for the Government National Mortgage Association (Ginnie Mae) from $300 billion to $400 billion.

Source:

White House Press Release

Notes:

Maximum amount based on increases in loan ceiling and securities guarantee. Deficit impact unknown.

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Purchase of Freddie Mortgage-Backed Securities

Jason Peuquet — Tue, 18 Aug 2009 18:01:29 +0000

Treasury Purchases of GSE Mortgage-Backed Securities

Date:

September 7, 2008

Who:

Treasury

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Amount Spent:

105900000000

Deficit Impact:

Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.

Source:

FHFA Release 8/6/09

Most Recent FHFA Report on Treasury and Federal Reserve Purchase Programs

Notes:

Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Freddie Mac mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.

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Streamlined Modification Program

Maya MacGuineas — Mon, 17 Aug 2009 14:06:50 +0000

Date:

November 11, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Creation of fast-track method for reducing monthly payments on mortgages held by Fannie Mae or Freddie Mac, restricting payments to 38 percent of income, reducing the interest rate, extending loan periods, and, deferring principal.

Source:

FHFA Nov. 11 Statement

Notes:

CBO's estimate from "Budget and Economic Outlook: Fiscal years 2009 to 2019" (http://www.cbo.gov/doc.cfm?index=9957) is listed as "unknown." FHFA is the Federal Housing Finance Agency.

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Home Affordable Refinance Program

Maya MacGuineas — Mon, 17 Aug 2009 14:01:37 +0000

Date:

February 18, 2009

Who:

Treasury

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Consumers

Economic Target:

Housing

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Mortgage owners will be allowed to refinance with less home equity than what was permitted by previous regulations. Program applies to loans owned or guaranteed by Fannie Mae and Freddie Mac and is one of two principle programs under the Treasury's Making Home Affordable program.

Source:

Treasury March 4 Term Sheet

Notes:

Budgetary impact of program is not known. Maximum and current costs also unknown.

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Purchase of Freddie Mac Preferred Stock

suggp — Fri, 14 Aug 2009 19:04:37 +0000

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount:

100000000000

Maximum Amount Special Symbol:

Amount Spent:

63700000000

Deficit Impact:

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. At the time, they estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

In a release on December 24, 2009, the Treasury announced that it has terminated the $200 million cap on purchases on Fannie Mae and Freddie Mac preferred stocks, stating thatsuch steps "are necessary for preserving the continued strength and stability of the mortgage market."

Source:

Bloomberg News Article 8/7/2009

Treasury Release 12/24/2009

Notes:

Since the purchase of Freddie Mac preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 2/25/2011 (http://www.fhfa.gov/Default.aspx?Page=70).

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Purchase of Fannie Mae Preferred Stock

suggp — Tue, 11 Aug 2009 01:33:02 +0000

Date:

September 7, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount:

100000000000

Maximum Amount Special Symbol:

Amount Spent:

98700000000

Deficit Impact:

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. They estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

In a release on December 24, 2009, the Treasury announced that it has terminated the $200 million cap on purchases on Fannie Mae and Freddie Mac preferred stocks, stating that such steps "are necessary for preserving the continued strength and stability of the mortgage market."

Source:

Treasury/ FHFA Sept. 7 Announcement

Treasury Feb. 18 Statement

Wire Story 8/6/2009

Treasury Release 12/24/2009

Notes:

Since the purchase of Fannie Mae preferred stock by FHFA constituted an intergovernmental transfer of stock from a GSE to a federal agency, the deficit impact is zero. Amount spent as of 5/9/2011 (http://www.fhfa.gov/Default.aspx?Page=70).

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Purchase of Fannie Mortgage-Backed Securities

Maya MacGuineas — Fri, 10 Jul 2009 20:03:23 +0000

Treasury Purchases of GSE Mortgage-Backed Securities

Date:

September 7, 2008

Who:

Treasury

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount Special Symbol:

Amount Spent:

114800000000

Deficit Impact:

Program allows the Treasury Department to purchase government sponsored enterprise (GSE) mortgage-backed securities in the open market.

Source:

FHFA Release 8/6/09

Most Recent FHFA Report on Treasury and Federal Reserve Purchase Programs

Notes:

Maximum purchases of mortgage-backed securities are unlimited. Figure for amount spent is current as of 3/2/2010 (http://www.fhfa.gov/Default.aspx?Page=70). Since the purchase of Fannie Mae mortgage-backed securities from the general fund of the Treasury constitutes an intergovernmental transfer, the deficit impact is zero.

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Conservatorship of Fannie/Freddie

Maya MacGuineas — Fri, 10 Jul 2009 19:59:50 +0000

Date:

September 7, 2008

Who:

FHFA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Government Conservatorship

Maximum Amount:

Amount Spent:

Deficit Impact:

389000000000

Placement of Fannie Mae and Freddie Mac into government conservatorship by the Federal Housing Finance Agency, until the institutions are deemed to have been stabilized. Conservatorship was coupled with other actions to ensure liquidity.

CBO estimates that $291 billion in federal outlays went towards the conservatorship of Fannie and Freddie in 2009, with a projected $98 billion in subsidies over the next 10 years.

As part of conservatorship, the Treasury agreed to purchase up to $100 billion in stock from each GSE ($200 billion total) including an immediate receipt of $1 billion in senior preferred stock from each GSE as well as warrants to purchase 79.9% of each GSE's common stock. On 2/13/2009, the Treasury Department increased the maximum amount of GSE stock they would agree to purchase by $100 billion each, bringing the total to $400 billion. They estimated that, in total, they would be required to purchase $50 billion from Freddie Mac and $16 billion from Fannie Mae.

Source:

Treasury/ FHFA Sept. 7 Announcement Treasury/ FHFA Sept. 7 Announcement

Treasury Feb. 18 Statement

CBO Report on Bugetary Treatment on Fannie and Freddie, January 2010

Notes:

Deficit impact represents CBO's estimate of the cost of bringing Fannie Mae and Freddie Mac "on-budget" for 2009-2019 (per CBO's proposed budgetary treatment) calculated by assessing the risk-adjusted net present value of Fannie Mae's and Freddie Mac's current net liabilities, plus their subsidy costs for 2009. (http://www.cbo.gov/ftpdocs/108xx/doc10878/01-13-FannieFreddie.pdf).

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Housing Tax Credits

suggp — Fri, 10 Jul 2009 19:55:06 +0000

Date:

July 1, 2008

Who:

IRS

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Tax Break

Maximum Amount:

17450000000

Amount Spent:

12280000000

Deficit Impact:

12280000000

The Housing and Economic Recovery Act of 2008 included several stimulative housing measures, including an increase in the low-income housing tax credit and created the first-time homebuyer tax credit.

Source:

Housing and Economic Recovery Act of 2008

Notes:

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Community Housing Grants

suggp — Fri, 10 Jul 2009 19:50:59 +0000

Date:

July 1, 2008

Who:

HUD

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Housing

Action Type:

Direct Spending

Maximum Amount:

3920000000

Amount Spent:

920000000

Deficit Impact:

3865000000

Grants for redevelopment of abandoned and foreclosed homes in high-foreclosure neighborhoods.

This measure was part of the Housing and Economic Recovery Act of 2008, along with an increase in the low-income housing tax credit, creation of the HOPE for Homeowners Program, and creation of the first-time homebuyer tax credit.

Source:

Housing and Economic Recovery Act of 2008

Notes:

Amount spent indicates estimated outlays in 2009, deficit impact indicates ten year estimate, and maximum amount indicates estimated budget authority (http://www.cbo.gov/ftpdocs/95xx/doc9597/hr3221.pdf).

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Purchase of Fannie/Freddie Debt

Maya MacGuineas — Fri, 10 Jul 2009 19:24:34 +0000

Purchase of Fannie / Freddie Debt

Date:

November 25, 2008

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Government and GSEs

Action Type:

Equity Purchase

Maximum Amount:

200000000000

Amount Spent:

75111000000

The Federal Reserve originally announced that it would purchase up to $100 billion in debt from Fannie Mae, Freddie Mac, and Federal Home Loan Bank, and up to and $500 billion in mortgage-backed securities from Fannie Mae, Freddie Mac, and Ginnie Mae. On March 18, 2009, the Federal Reserve raised its intended purchases of agency debt (Fannie, Freddie, Federal Home Loan Bank) to $200 billion (a $100 billion increase) and its intended purchases of agency mortgage-backed securities to $1.25 trillion (a $750 billion increase).

In a statement from the FOMC on 9/23/2009, the Fed will "gradually slow the pace" of its purchases of agency debt in order to promote a smooth market transition. In addition, the FOMC stated that such purchases should expire by the end of Q1 2010.

Source:

Federal Reserve 3/18/2009 Release

Federal Reserve 11/25/2008 Release

Notes:

Amount spent indicates holdings of agency debt and mortgage backed securities as of 1/16/2013. See http://www.federalreserve.gov/releases/h41/Current/. Activities of the Federal Reserve are not directly recorded in the federal budget. However, each year the Federal Reserve remits a portion of its earnings to the general treasury. This remittance is generally in the range of $20-$30 billion per year, but the CBO estimates that the Fed's earnings will be lower by approximately $90 billion over the next ten years.

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SBA Actions Promoting Small Business Lending

suggp — Fri, 10 Jul 2009 18:47:09 +0000

Date:

March 16, 2009

Who:

SBA

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other Business

Action Type:

Regulatory Change

Maximum Amount Special Symbol:

Amount Spent Special Symbol:

Deficit Impact Special Symbol:

Programs are part of a package of government actions by the Treasury Department and Small Business Administration (SBA) on March 16, 2009 to promote small business lending.

These measures include:

• Eliminating borrower and lender fees for SBA-backed 504 loans, which combines government-backed loans with private mortgage loans to support community development.

• Eliminating up-front fees for SBA 7(a) loans.

• Providing rebates for loan fees paid since February 17th.

• Expediting future SBA loan processing.

• Requiring the 21 biggest banks receiving federal money must compile monthly reports on their levels of small business lending. The Treasury department also calls on all banks to report on their small business lending quarterly, rather than annually.

Source:

Treasury Announcement 3/16/2009

Program Q & A

Notes:

Costs of provisions are unknown.

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Automaker Loans for Energy Efficiency

suggp — Fri, 10 Jul 2009 18:38:53 +0000

Date:

September 25, 2008

Who:

Dept. of Energy

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Manufacturers

Action Type:

Loans

Maximum Amount:

25000000000

Amount Spent:

8000000000

Deficit Impact:

7510000000

Loans to automakers, provided under the ‘Advanced Technology Vehicles Manufacturing Incentive Program,' to retool factories and perform other activities related to producing “advanced technology vehicles” with better fuel economy performance.

Source:

Continuing Appropriations Resolution, 2009

Notes:

Deficit impact based upon net-present value of loans authorized. Total loans might equal less than $25 billion, since the risk of default appears to have increased. It is unknown how much has been issued in loans so far.

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Education

Maya MacGuineas — Fri, 10 Jul 2009 18:24:22 +0000

Stimulus 2009 - Education

Date:

February 17, 2009

Who:

Congress

Policy Area:

Sector Policy (Non-Financial)

Economic Target:

Other

Action Type:

Direct Spending

Maximum Amount:

103000000000

Amount Spent:

97364000000

Deficit Impact:

103000000000

Education Spending (in millions of dollars)
Year	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2009-2019
Employment and Training	613	2,226	1,224	242	0	0	0	0	0	0	0	4,305
Education for the Disadvantaged	494	6,210	5,776	520	0	0	0	0	0	0	0	13,000
State Fiscal Stabilization	6,540	28,377	16,070	2,363	250	0	0	0	0	0	0	53,600
Special Education	732	5,734	5,124	610	0	0	0	0	0	0	0	12,200
Student Financial Assistance	917	14,572	1,056	15	0	0	0	0	0	0	0	16,560
Other Education	207	1,078	624	203	12	0	0	0	0	0	0	2,124
Other, Title VIII	540	324	283	237	155	4	4	2	0	0	0	1,549
Totals	10,043	58,521	30,157	4,190	417	4	4	2	0	0	0	103,338

Source:

CBO Analysis of Final Bill

Text of "American Recovery and Reinvestment Act of 2009"

Notes:

Positive numbers in table indicate spending, negative numbers indicate savings or revenue. Maximum amount is taken from CBO's calculation of budget authority over the 2009-2019 period. Deficit impact is taken from CBO's deficit impact calculation for 2009-2019. Amount spent as of 11/3/2012.

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