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US/World financial crisis

What's in the stimulus package?

Article published on the 2009-02-14 Latest update 2009-02-14 12:25 TU

Signs advertising a store closing and sales are seen for the Ace hardware store in Islip, New York (Photo: Reuters)

Signs advertising a store closing and sales are seen for the Ace hardware store in Islip, New York
(Photo: Reuters)

Passing the US's stimulus package was "a critical step" in fighting the effects of the economic crisis that has hit the country, according to President Barack Obama. It is worth 787 billion dollars (615 billion euros), nearly four times the French government's stimulus package for an economy more than five times as big.

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If the money was shared out among the world's population it would come to 116 dollars (90 euros) per person. It represents just over five per cent of US gross domestic product and is 1.3 times the cost of the Iraq war.

Among its measures are:

* Infrastructure spending, including road-building, expanding the rail network and developing broadband internet access - 120 billion dollars (93 billion euros);

* Renewable energy - 20 billion dollars (15.5 billion euros);

* Electrical grid modernisation - 11 billion dollars (8.5 billion euros);

* Tax cuts - expected to benefit 95 per cent of US families;

* Benefits - extending unemployment pay, health care and funds for states where education cuts are threatened;

* Banning bonuses for top bosses in large companies receiving aid from the Troubled Asset Relief Program (Tarp);

* "Buy American" - a requirement for public works to use US-made iron, steel and manufactured goods, demanded by unions but watered down after protests from Canada, the EU and some US exporters.