Final Version of Federal Stimulus Bill Contains over $40 Billion for Information Technology Spending
The American Recovery and Reinvestment Act of 2009, otherwise known as the "stimulus bill" that was passed by Congress on February 13 and signed by the President on February 17 contains over $40 billion in funds specifically earmarked for information and technology-related spending. This includes:
• $11 billion for Smart Grid Investment Program: includes funds for research and development, pilot projects, and federal matching funds "to modernize the electricity grid making it more efficient, secure, and reliable and build new power lines to transmit clean, renewable energy from sources throughout the nation."
• $300 million for Smart Appliances: includes funds to "provide consumers with rebates for buying energy efficient Energy Star products to replace old appliances, which will lower energy bills."
• $7.2 billion for Wireless and Broadband Grants: includes funds for broadband and wireless services in underserved areas to strengthen the economy and provide business and job opportunities in every section of America with benefits to e-commerce, education, and healthcare.
• $650 million for DTV Conversion Coupons
• $750 million for Transit System upgrades: includes funds to "to modernize existing transit systems, including renovations to stations, security systems, computers, equipment, structures, signals, and communications."
• $500 million to replace Social Security Administration's National Computer System.
• $50 million to make improvements to the IT system at the Farm Service Agency.
• $290 million to upgrade and modernize IT systems at the State Department.
• $650 million in Education Technology: to create "21st century classrooms, including computer and science labs and teacher technology training."
• $250 million for Statewide Data Systems: "competitive grants to states to design and develop data systems that analyze individual student data to find ways to improve student achievement, providing teachers and administrators with effective tools."
• $19 billion for Health Information Technology: "to jumpstart efforts to computerize health records to cut costs and reduce medical errors."
Billions more in information technology funds should be available as part of funding in other areas -- even if not specifically earmarked for the information technology industries.
David D. Johnson is a business lawyer whose practice focuses on litigation and other issues relating to digital media and consumer electronics companies. David can be contacted at (310) 785-5371 or DJohnson@jmbm.com.
