Stimulus Package Chock-Full of Opportunities
Stimulus Package Chock-Full of Opportunities
President Barack Obama’s economic stimulus plan, officially named the “American Recovery and Reinvestment Act of 2009,” is set to pump $789 billion into our economy, much of which involves technological innovations and efficiencies, http://washingtontechnology.com/articles/2009.
While the details are yet to be unveiled and many are still critical of the stimulus plan, the investment of dollars in IT-related development is unprecedented. When all is said and done, IT stands to see an infusion of about $169 billion in projects aimed to turn our economy around. Compared to the $70 billion spent on IT by the federal government in 2008, that’s quite a message, http://washingtontechnology.com/Articles/2009.The message being: President Obama understands the immediate and positive economic impact of investing in technology.
The priorities of the stimulus plan bode well for many technology groups that have been calling for more broadband and smart-grid funding, two of the technology-related areas receiving money. “Our firms know that technology investments are the quickest way to dramatically turn the economy around,” said Information Technology Industry Council President, Dean Garfield. “Increased broadband spending, electronic medical records, green energy investments and new computers for schools and libraries are all smart ways to keep America competitive while also creating new jobs and spending.” http://www.itic.org
Show Me the Money
Where will IT see opportunities? The three high-tech areas getting the majority of the stimulus infusion are:
- computerized medical records,
- creation of smarter electrical grids,
- expansion of high-speed Internet access in rural and underserved communities.
A study published in January by the Information Technology and Innovation Foundation concluded that putting $30 billion into those three fields could produce more than 900,000 jobs in the first year. Beyond creating jobs, advocates say, government investment in these technology areas holds the promise of laying a lasting foundation for more business innovation and efficiency, while helping to create new digital industries, http://www.nytimes.com/.
Other areas of focus for Technology and Communication, http://www.pattonboggs.com/stimulustechnology/:
- $2.5 billion for the Department of Agriculture for distance learning, telemedicine and programs that increase broadband access and usage.
- $4.7 billion for the National Telecommunications and Information Administration Broadband Technology Opportunities Program (TOP) for competitive grants to accelerate broadband deployment in unserved and underserved areas, with at least $200 million for competitive grants for expanding public computer center capacity, including community colleges and public libraries, and at least $250 million for competitive grants for innovative programs for sustainable broadband adoption.
- $650 million for Digital-to-Analog Converter Box Program for additional implementation and administration of program, including coupons, consumer outreach and support.
- $650 million to the Department of Education for educational technology State grants.
- $200 million to the Department of Veterans Affairs for information technology systems, Veterans Benefit Administration for paperless claims processing.
Regardless of the final impact the stimulus package brings, opportunities are promising for IT. To track just when and where the money is spent, visit www.recovery.gov.