American Reinvestment and Recovery Act of 2009

From Open Energy Information


About American Reinvestment and Recovery Act of 2009[1]

"On Feb. 13, 2009, Congress passed the American Recovery and Reinvestment Act of 2009 at the urging of President Obama, who signed it into law four days later. A direct response to the economic crisis, the Recovery Act has three immediate goals:

  1. Create new jobs and save existing ones
  2. Spur economic activity and invest in long-term growth
  3. Foster unprecedented levels of accountability and transparency in government spending

The Recovery Act intends to achieve those goals by:

  • Providing $288 billion in tax cuts and benefits for millions of working families and businesses
  • Increasing federal funds for education and health care as well as entitlement programs (such as extending unemployment benefits) by $224 billion
  • Making $275 billion available for federal contracts, grants and loans
  • Requiring recipients of Recovery funds to report quarterly on how they are using the money. All the data is posted on so the public can track the Recovery funds.

In addition to offering financial aid directly to local school districts, expanding the Child Tax Credit, and underwriting a process to computerize health records to reduce medical errors and save on health care costs, the Recovery Act is targeted at infrastructure development and enhancement. For instance, the Act plans investment in the domestic renewable energy industry and the weatherizing of 75 percent of federal buildings as well as more than one million private homes around the country.

Construction and repair of roads and bridges as well as scientific research and the expansion of broadband and wireless service are also included among the many projects that the Recovery Act will fund.

While many of Recovery Act projects are focused more immediately on jumpstarting the economy, others, especially those involving infrastructure improvements, are expected to contribute to economic growth for many years.[2]

Projects Funded

Smart Grid Investment Grant Program

Smart Grid refers to the allocation of $3.4 billion towards improving and updating the power grid in the United States. Some of these measures include installing smart meters, smart grid management software, and web-based tools for consumers to track energy use. 100 projects were selected across the country to receive funding from the ARRA of 2009. The continued development of the Smart Grid will allow for more efficient utilization of assets resulting in reduced fuel consumption, reduced CO2 emissions, and increased grid reliability.

Smart Grid Demonstration Projects

Smart Grid Demonstration Projects refers to the award of $620 million for 32 demonstration projects across the country. These demonstration projects will serve as models for future installations of smart grid equipment and software. The private sector has invested $1 billion in funding towards demonstration projects, making the total allocation of funds toward demonstration projects $1.6 billion.[3]


  2. Recovery Act
  3. DOE news