$410 Billion Proposed Spending Bill: Too Much Money Earmarked for Special Interests
by Rosanne Lim
Congress has sent the $410 billion bill to President Obama. The once-bipartisan bill that was aimed at funding domestic agencies evolved to become a representation of US lawmaker’s fondness for local pet projects and free-spending ways. The bill cleared in the Senate with a 62-35 vote. This bill is not to be confused with the 2010 federal budget, or the the economic stimulus package.
While the White House is keeping this bill at a distance, President Obama is expected to sign the measure to prevent a partial standstill in the government. The president is set to announce measures that will curb the so-called earmarks.
According to House GOP leader John Boehner, “If it had not been for the stimulus and the budget proposal, it might have been…noncontroversial”. This 1,132-page spending bill has a wide coverage; it includes the annual operating budget for every Cabinet department except for those related to Defense, Veterans Affairs, and the Homeland Security. It also wraps nine foreign aid bills together and contains multiple policy changes.
Some of the proposal includes stopping a program that allows Mexican trucks to operate outside the US-Mexico border, removing programs that are opposed by environmentalists, and easing travel rules for Cuban-Americans. The spending bill was mostly created last year with the support of important Republican figures such as Lamar Alexander and McConnell.
In the end, Alexander still voted for the measure but McConnell decided to withdraw his support. It passed with the vote of all but three Democrats and the vote of eight Republicans.
Where Will the Money Go To?
Filled with pet projects such as musical education programs, subsidies for museums and the arts, and agricultural programs, there are also significant increases proposed for food aid and energy research in the bill. It was originally to be completed when it had the support of most Democratic leaders as well as several influential Republicans.
However, because of the political shockwaves in Congress due to Obama’s economic stimulus package and his proposed 2010 budget plan that forecasts $1.8 trillion in deficit, the $410 billion bill has become decidedly unpopular. Around one-third of the budget will go to the operation of Cabinet departments and other agencies. The remaining programs are composed of benefits programs including the Social Security, Medicaid, Medicare, and internet payments for the $11 trillion national debt.
So far, total appropriations for 2009 are estimated to reach $1.4 trillion. This figure includes the spending for the $288.7 billion for the stimulus bill. The Pentagon is expected to submit another $75 billion request for wars in Afghanistan and Iraq.
Below are the highlights of the spending bill:
- Education — $66.5 billion
- Health and Human Services — $66.3 billion
- Housing and Urban Development — $41.5 billion
- Transportation — $13.5 billion and an additional $53.7 billion for highway and related transportation funding through gasoline taxes
- Energy — $27 billion
- Justice — $26.1 billion
- Agriculture — $20.5 billion
- Labor — $15.3 billion
- State — $13.1 billion
- Treasury — $12.7 billion
- Interior — $10.1 billion
- Commerce — $9.3 billion
Some states also receive earmarks to be used for their projects. The average earmark per capita is $22.39. States like Arizona have $54.7 million earmarked, which only amounts to $8.41 per person. Other states, like Alaska have $143.9 million in Congressional earmarks, which is $209.71 per capita. Below is a list of states with more than average in earmarks.
Earmarks and Pet Projects
It seems that Obama, who had promised to force Congress to curb pork barrel spending, may have a hard delivering on his statements. The bill contains earmarks that total $5.5 billion. Republicans has about 40% of the earmarks.
Some of the earmarks include $1.2 million for Helen Keller International; it will give eyeglasses to students with poor vision. It also includes $485,000 for a boarding school project for at-risk students in Alaska as well as various grants to state and local police force to combat methamphetamine.
There are also big increases in the bill including a 14% boost for a program that feeds poor women and infants. Other increases include a 10% increase in housing vouchers, 13% increase for the Agricultural Department, and 10% increase for the Amtrak rail system. Congress also gave itself a 10% increase in budget bringing the total to $4.4 billion. But this measure also contains a provision that denies lawmakers the automatic increases next January 1.
Quite a few senators also receive solo earmarks. Below are some of the highest amounts.
For more information of Congressional earmarks, please visit the following:
Taxpayers for Common Sense – earmarks in the omnibus, what it means to the economy
Associated Press – where will most of the spending go?
Tags: Economy, government spending
About the Author - Rosanne Lim
Rosanne started has been in the financial services industry since 2005. She is currently applying her knowledge about banking and finance to the currency industry.
