Obama stimulus bill

Much in Obama stimulus bill won't hit economy soon

By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer – Tue Jan 20, 3:13 am ET

WASHINGTON – It will take years before an infrastructure spending program proposed by President-elect Barack Obama will boost the economy, according to an analysis by congressional economists.

The findings, released to lawmakers Sunday, call into question the effectiveness of congressional Democrats' efforts to pump up the economy through old-fashioned public works projects like roads, bridges and repairs of public housing.

Less than half of the $30 billion in highway construction funds detailed by House Democrats would be released into the economy over the next four years, concludes the analysis by the Congressional Budget Office. Less than $4 billion in highway construction money would reach the economy by September 2010.

The CBO analysis doesn't cover tax cuts or efforts by Democrats to rush aid to cash-strapped state governments. But it illustrates just how difficult it can be to use public investment to rush money into the economy. It usually takes bids and contracts to announce such developments, which invariably takes time.

Overall, only $26 billion out of $274 billion in infrastructure spending would be delivered into the economy by the Sept. 30 end of the budget year, just 7 percent. Just one in seven dollars of a huge $18.5 billion investment in energy efficiency and renewable energy programs would be spent within a year and a half.