What Happened to the Stimulus?

The Administration's $787 billion booster shot is not the magic bullet some had expected. Inside the White House operation to fix that

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Greg Ruffing / Redux for TIME

Construction workers on the site of an infrastructure project at the junction of Interstates 490 and 77 in Cleveland, Tuesday 30 June 2009. The project is being funded by government stimulus money as part of the American Recovery and Reinvestment Act.

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Biden's team informed states and localities months ago to scrub their wish lists of anything that might be seen as unnecessary or wasteful. White House officials were happy to sign off on bridge repairs and roadwork on busy intersections and new runway signals for strapped airports. But they have spent a lot of time trying to kill projects that sound like red alerts on Fox News: a plan for military-cemetery headstone-straightening was scrapped, as was a request for a $10,000 refrigerator to house fish sperm in South Dakota. Gone too was $7 million for Interior Department aircraft to study bird migration. Transportation Secretary Ray LaHood persuaded the governor of Ohio to redirect $57 million for future road-project planning to immediate construction. Cities and states were told to stay away from swimming-pool construction and anything with the word golf in it--Frisbee golf, clock golf, minigolf. "The Frisbee people are going to be unhappy with me forever," says DeSeve.

But the sheer complexity of the stimulus measure makes it difficult to bird-dog. Though the Recovery Act was a single piece of legislation, it included thousands of funding streams for tens of thousands of projects. About $144 billion is allocated directly into state coffers for continuing existing programs that have been heavily burdened by the recession, like Medicaid. Hundreds of billions more have been set aside for tax cuts and continuing benefits to the poor and unemployed. The most visible part of the program, and the most politically explosive, is the roughly $152 billion for infrastructure investment, for which no one had a road map. In some cases, states and localities could spend those funds pretty much any way they liked. And that's where Biden's bloodhounds have been sniffing around.

Some silly projects are sure to be built. In Long Beach, Calif., local and state officials bucked the orders from Washington. The city council unanimously approved a $620,000 skateboard-park renovation in a rough neighborhood, half-pipe and all. "It's an incredible opportunity," says local councilman Robert Garcia. "This is near and dear to my heart," noted California Senator Barbara Boxer on the Senate floor. Biden's staff has battled to kill the project behind the scenes, and the outcome is still unclear. Meanwhile, on other requests, Republicans quibbled with Biden's definition of prudent. Some $3.4 million will be spent on a Florida wildlife crossing at a highway with one of the highest rates of turtle mortality in the world. "Why did the turtle cross the road?" Oklahoma Senator Tom Coburn, a leading Republican critic of the stimulus, teased in his report on the spending. "To get to the other side of a stimulus project."

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