Davis Langdon
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2009 ARRA Stimulus Package

2009 ARRA Stimulus Package

Category Market Reports

Published February 2009

Author Peter Morris

The American Recovery and Reinvestment Act of 2009 (ARRA) has now been signed into law, and includes $100 billion specifically identified for construction related projects.

The American Recovery and Reinvestment Act of 2009 (ARRA) is one of a series of administrative and legislative actions intended to reduce the effects of the current recession, and to stimulate economic activity. Construction and construction related activities make up a large portion of the spending appropriated by this act, both in the direct expenditure of funds for construction for buildings and infrastructure, and in the indirect effect of the loan guarantees, non-construction spending, and tax provisions of the act. There are two parts to the act: Division A includes spending provisions and Division B, tax provisions.

The best estimate of the overall direct cost of the package which has now been signed into law by President Obama is $789 billion. Of this some $100 billion is specifically identified as being for construction related projects, and there are many other provisions related to loan  guarantees, non-construction spending, and tax changes that could generate far more construction spending over time. In context, the US Census Bureau estimates the total value of construction put in place in 2008 at $1,078 billion, roughly $60 billion lower than 2007.