Addresses Immediate Economic Challenges
Includes a bipartisan economic growth package that spurs investment and strengthens the Nation's economy.
Provides approximately $100 billion in temporary relief that would allow Americans to keep more of their paychecks to spend as they see fit.
Saves businesses approximately $50 billion in near-term taxes through a temporary change to the tax code that will allow American businesses that buy new equipment this year to deduct an additional 50 percent of the cost of their investment in 2008.
Continues economic growth which is a crucial element in reducing the deficit and balances the budget in 2012, but this growth package, combined with a slowing economy, does contribute to the near-term budget deficit. In FY08 the deficit will represent 2.9 percent of GDP, and 2.7 percent of GDP in FY09.
Promotes and preserves the American dream of homeownership though education and assistance to combat foreclosures and maintain a stable, healthy housing market.
Increases mortgage financing options for homebuyers and homeowners through reforms in Federal Housing Administration authority such as risk-based pricing to offer a wider variety of mortgage products and create more homeownership opportunities.
Includes $65 million for the Department of Housing and Urban Development's Housing Counseling program, and $150 million for the Neighborhood Reinvestment Corporation to help educate consumers, combat foreclosures, and promote a healthier housing market.
Provides $2 billion for the HOME Investment Partnership program, including $50 million for the American Dream Downpayment Initiative to expand affordable housing and minority homeownership.
Facilitates public-private partnership -- the HOPE NOW Alliance -- that includes a group of lenders, loan servicers, mortgage counselors, and investors to identify troubled borrowers and help them refinance or modify their mortgages, so more families can stay in their homes.
Ensures Sustained Prosperity
Makes tax relief permanent for long-term economic growth and sustainability.
The President's 2001 and 2003 tax relief fostered economic growth, but is currently set to expire in 2010. Inaction would result in 116 million taxpayers seeing a tax increase of $1,800, on average.
Improves access for more Americans to affordable health care by fostering a marketplace, encouraging competition, and improving efficiency.
Fosters a marketplace: Levels the playing field for those Americans who do not receive health care through their employer. Replaces the existing -- and unlimited -- tax exclusion for employer-sponsored insurance with a standard health insurance deduction for everyone.
Encourages competition: Establishes association health plans for small employers, civic groups, and community organizations. Creates a competitive marketplace across state lines. Reforms medical liability law to reduce frivolous legal proceedings.
Improves efficiency: Facilitates health information technology advancements through the adoption of policies that will encourage physicians and others to adopt electronic health records and through furthering technologies for safe, secure health information exchange.
Builds on the success of No Child Left Behind through support of proposals to reauthorize and strengthen the law while also proposing policies to make college more affordable for families.
$14.3 billion for Title I -- a 63 percent increase since 2001 -- to continue driving improvement through NCLB. Last year, fourth and eighth graders achieved the highest math scores on record. African-American and Hispanic students are making significant progress, posting all-time highs in a number of categories.
$1 billion for effective, research-based literacy instruction through Reading First.
$300 million for Pell Grants for Kids. The Federal Pell Grant program, which students can use to attend the public or private college of their choice, Pell Grants for Kids would offer scholarships to low-income children in underperforming elementary and secondary schools, including high schools with significant dropout rates, to help them with the costs of attending an out-of-district public school or nearby private or faith-based school.
$491 million for School Improvement Grants to help turn around schools in need of improvement.
$95 billion in financial aid to help 10.9 million students pay for college.
A $2.6 billion increase in annual appropriations for Pell Grants. This investment, together with funding provided by the College Cost Reduction and Access Act, will support a maximum Pell Grant of $4,800 in 2009, and allow the maximum grant to rise to $5,400 by 2012.