	Background on the American Recovery and Reinvestment Act of 2009

On February 17, 2009, President Obama signed into law H.R. 111-5 ). The Congressional Budget Office (CBO) estimates that the ARRA will cost $787 billion over 10 years, although most of its budget authority is slated for two fiscal years (FY2009-FY2010). The ARRA is a further response to the depth of the economic recession facing the United States (and the rest of the world) at the beginning of 2009. The ARRA—billed as an economic stimulus package—is focused on stimulating the economy via individual and business economic activity. The package boosts government spending on various infrastructure programs and certain government benefits programs. This report analyzes the agriculture, nutrition, and rural provisions in the ARRA. Agriculture, Nutrition, and Rural Programs

Agriculture, nutrition, and rural programs—including food assistance, rural development, farmer assistance, conservation, and other related programs (a few of which are administered outside the U.S. Department of Agriculture (USDA))—would receive about $26.6 billion of the $787 billion in the enacted ARRA (about 3.4%, Figure 1 ). The $26.6 billion for agriculture, nutrition, and rural programs is allocated as follows ( Figure 2 , Table 1 ):
Nutrition assistance programs receive $20.8 billion. Food stamp benefits in the newly renamed Supplemental Nutrition Assistance Program (SNAP) represent the largest single increase and rise 20% on average from current levels. Rural development receives a sizeable increase of $4.4 billion over two years (compared to a regular annual appropriation of about $2.5 billion). Rural broadband receives $2.5 billion of this, an amount that allows outlays through FY2015 that are 20-30 times more than recent annual appropriations. Assistance for farmers totals $744 million, including crop insurance/disaster programs ($674 million) and farm loan programs ($20 million). Conservation programs receive $348 million for watershed flood prevention ($290 million) and dam rehabilitation projects ($50 million). USDA receives $250 million for its own facilities maintenance ($200 million) and computer infrastructure ($50 million). The USDA Office of Inspector General receives $23 million for increased oversight and audits of these supplemental spending programs. Trade Adjustment Assistance for Farmers is reauthorized.
On February 17, 2009, President Obama signed into law H.R. 1, the American Recovery and Reinvestment Act of 2009 (ARRA, P.L. 111-5). The ARRA is a response to the depth of the economic recession facing the United States (and the rest of the world) at the beginning of 2009. It is billed as an economic stimulus package to improve the situation of individuals and businesses. The ARRA boosts government spending on various infrastructure programs and government benefits programs, and offers individual and business tax benefits. The Congressional Budget Office (CBO) estimates that the ARRA will cost $787 billion over 10 years, although most of its budget authority is slated for two fiscal years (FY2009-FY2010).
Agriculture programs—including nutrition assistance, rural development, farmer assistance, and conservation—would receive about $26.6 billion of the $787 billion in the enacted ARRA (about 3.4%). The $26.6 billion is allocated as follows:
Nutrition assistance programs receive $20.8 billion (78% of the total amount for agriculture). Food stamp benefits and eligibility in the newly renamed Supplemental Nutrition Assistance Program (SNAP) represent the largest single increase (nearly $20 billion); benefits rise 20% on average from current levels. Rural development receives a sizeable increase of $4.4 billion over two years (compared to a regular annual appropriation of about $2.5 billion). Rural broadband receives $2.5 billion of this, an amount that allows outlays through FY2015 that are 20-30 times more than recent annual appropriations. Assistance for farmers totals $744 million, including crop insurance/disaster programs ($674 million), aquaculture feed cost assistance ($50 million), and farm loan programs ($20 million). Conservation programs receive $348 million for watershed flood prevention ($290 million) and dam rehabilitation projects ($50 million). USDA receives $250 million for its own facilities maintenance ($200 million) and computer infrastructure ($50 million). The USDA Office of Inspector General receives $23 million for increased oversight and audits of these supplemental spending programs. Trade Adjustment Assistance for Farmers is reauthorized.
This report analyzes the agriculture, nutrition, and rural provisions in the ARRA.