Jan 16, 2009

The Wall Street Journal described the economic recovery package released by Democratic House leaders yesterday as a "potential bonanza for technology companies." But what exactly would that bonanza fund?

The proposed American Recovery and Reinvestment Bill of 2009 includes $550 billion in spending programs and $275 billion in temporary tax cuts. Of that, most of the tech-related funds would go toward energy and e-health initiatives. Below is a partial breakdown:

• $32 billion in grants and loans for modernizing the nation's electricity grid and investing in renewable technology, including $11 billion for R&D, pilot projects and federal matching funds for the Smart Grid Investment Program and $8 billion in loans for renewable energy power generation and transmission projects. Funds would also be allocated for advanced vehicle battery development, Department of Defense research, and carbon capture and sequestration technology demonstration projects.
• $16 billion in energy efficiency projects, including retrofits of HUD-sponsored housing and federal buildings, consumer rebates for Energy Star appliances and government purchases of alternative fuel vehicles
• $20 billion on health IT systems to "jumpstart efforts to computerize health records"
• $21 billion to renovate and modernize schools for the 21st century, including technology upgrades and energy efficiency improvements. $1 billion is set aside to create computer and science labs and for teacher technology training.
• $10 billion for science facilities, research and instrumentation, including $3 billion for the National Science Foundation and $1.9 billlion for basic research at the Department of Energy.
• $6 billion for wireless and broadband grants to increase service in unserved and underserved areas
• $965 million for technology improvements at government agencies, including the Social Security Administration and the State Department
• $650 million to continue funding the Commerce Department's digital TV converter coupon program

One of the most closely-watched areas from a tech/telecom perspective has been broadband. You may remember that Free Press, the group behind the SaveTheInternet.com campaign, had recommended that the stimulus bill include $44 billion in broadband-related investments. But in a statement yesterday, Free Press policy director Ben Scott said, "While $6 billion is not as much as we had hoped for, it is a substantial investment that represents an important public commitment to broadband."

In a letter to the House and Senate Appropriations Chairs, Free Press focused instead on how the money should be used, urging Congressional leaders to tie the funds to "a single agency that can uphold clear principles of public service and enforce concrete administrative accountability."

Tags: broadband, Congress, e-health, economic stimulus, economy, energy, energy efficiency, Free Press, smart grid, wireless