Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output From July 2010 Through September 2010

November 24, 2010

The American Recovery and Reinvestment Act of 2009 (ARRA) contains provisions that are intended to boost economic activity and employment in the United States. Section 1512(e) of the law requires the Congressional Budget Office (CBO) to comment on reports filed by recipients of ARRA funding that detail the number of jobs funded through their activities. This CBO report fulfills that requirement. It also provides CBOs estimates of ARRAs overall impact on employment and economic output in the third quarter of calendar year 2010. Those estimates--which CBO considers more comprehensive than the recipients reports--are based on evidence from similar policies enacted in the past and on the results of various economic models.