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State and Local Governments Look To Play A Major Role In USDA Economic Stimulus Allocations

Funding for the Department of Agriculture under the Economic Stimulus Package acts on two of the core elements of the Obama-Biden platform; protecting American families and taking advantage of the economic opportunities of rural America. The first of these elements is addressed in Supplemental Nutrition Programs responsible for over two-thirds of the funds allocated to the department. Combined with spending under several different departments, the Stimulus Package also acts on the commitment President Obama made to extending technology to and building opportunities for, farmers and businesses in rural America.

Facts and Impacts of USDA Stimulus Spending:

  • The Department of Agriculture has been allocated over $27 Billion under the American Recovery and Reinvestment Act of 2009
  • The health, safety and welfare of American families continues to be emphasized in the Economic Stimulus Package as over $20 Billion of Agriculture spending is added to the billions being spent on social services by the Department of Health and Human Services, Education and Housing and Urban Development
  • Information technology will be a major component as the Stimulus Package looks to make rural communities fertile ground for businesses by closely following the Obama-Biden plan of "Connecting America"
  • Due to the local impact of these programs, it is likely that State and Local Governments and individual citizens will be awarded the vast majority of these funds

Competition for Business:

  • Social services may have won the majority of spending, but the Department of Agriculture will still require a broad range of services from state and local, and federal contractors. Architecture, Engineering and Construction, Environmental and Information Technology firms should get in as early as possible. These requirements will be likely be large and highly contested
  • Grants will make up a large portion of the community development spending, contractors should already be in the process of developing and pushing requirements to state and local entities
  • On the federal side look for the Department of Agriculture to use established MACs, GWACs and GSA Schedules to adhere to timelines associated with spending
  • Contractors interested in the community development aspect of the Department of Agriculture allocations may also be interested in S&L actions resulting from spending under the Department of Commerce, Interior and Transportation

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