Highlights From Congress’ Latest Spending Bill — Points That Impact The Economy And Your Portfolio

Big takeaways

  • The December spending bill authorized the government to spend more than $1.7 trillion
  • Line items such as aid to Ukraine and election monitoring reform have varied
  • The bill also prevented costly foreclosures

In December, Congress passed an omnibus spending bill, authorizing more than $1.7 trillion in spending on various programs across the country.

US government spending is a major part of the country’s economic activity and can have a significant impact on the economy and stock market. It’s important for investors to keep track of these big expense accounts, and how they might affect your portfolio.

If you want to invest in companies affected by government spending without doing all the research, consider the Q.ai Infrastructure Investment Kit. Download the app to verify.

The December omnibus spending bill

The December spending bill included appropriations for a variety of purposes.

Ukraine

One of the top items in the spending bill is $45 billion earmarked to help Ukraine in its war with Russia.

Of that $45 billion, $9 billion will go to the Ukrainian military to pay for training, weapons, logistics, and salaries, and $12 billion will be used to replenish US military equipment that has already been deployed. in Ukraine.

The remaining funds provide economic support to the Ukrainian government, humanitarian and infrastructure goals, and European Command operations.

Given that a large portion of this funding will be used to replenish the US inventory, this could be a boon for contractors and domestic military manufacturers.

Election Counting Act

The bill also includes language clarifying the role of the vice president in verifying the results of the presidential election. It also provides $11.3 billion to the FBI to investigate domestic terrorism.

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This may help to stabilize the economy by reducing the fear of future unrest during the elections.

Nutritional assistance

The bill established a permanent nationwide EBT summer program that would begin in the summer of 2024. This program would offer families with children receiving school meal assistance $40 per month. It also solves the rules for children’s food in rural areas in the summer.

This funding will help families in need to provide food and may help increase sales to businesses that supply food to these communities.

TikTok

With the passage of the bill, the Chinese video app TikTok will be banned from government devices. It comes after some officials raised concerns that the app could be used to collect Americans’ personal data or conduct propaganda.

Investors in ByteDance, the creator of TikTok, may fear that this is the first step in a nationwide crackdown on the popular app.

Medicaid

The spending bill removes a pandemic-era rule that barred states from disenrolling Medicaid recipients, a rule that allowed Medicaid to reach 90 million enrollees.

The state could begin phasing out coverage as early as April 1, 2023, and experts estimate that as many as 19 million people could lose their benefits. Although many cannot afford alternative coverage, some will turn to private insurance, which can increase the insurer’s benefits.

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College assistance

Federal Pell Grants, a college aid program that provides money to low-income students, will see an increase. The top prize will increase by $500 to a total of $7,395.

raising children

The Children and Development Fund will receive a 30% increase in funding. Head Start, another early childhood education program, will receive a major funding boost of $8.6 billion.

Environmental protection

The bill also includes $576 million in additional funding for the Environmental Protection Agency, bringing its total budget to more than $10 billion. The National Park Service will see a 6.4% increase, allowing it to bring back 500 of the 3,000 workers it cut over the past decade.

Funding here could help the EPA increase environmental regulation and oversight, which could result in fines for companies that violate environmental laws. This measure can increase visits to national parks.

A shutdown is avoided

Another important note for investors is that the passage of the spending bill means that the United States has avoided a government shutdown. These shutdowns occur when the government fails to authorize a spending bill, forcing the closure of government offices and agencies.

This can have a huge impact on the economy. For example, Standard & Poor’s estimated that the 2013 shutdown, which lasted 16 days, cost the US economy $24 billion and reduced GDP by 0.6%.

Avoiding foreclosures is good news for investors.

What the bill means for investors

Investors should keep a close eye on the government’s major spending bill. The US government spends more than $1 trillion a year, which is a large part of the country’s GDP. This means that major changes in the way governments spend their money can affect the economy and financial markets.

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Overall, this spending bill did not contain any unexpected surprises or major changes. This means that investors don’t have to worry too much about spending money on a shock wave in the market. However, there are a few things to note.

One is the commitment to help Ukraine more. It looks like the US will continue to spend money on weapons and other military aid to Europe. This could be good news for weapons manufacturers, software companies, and other companies that work closely with the military.

TikTok’s ban on federal tools is also noteworthy. Lawmakers have raised concerns about enforcement with increasing frequency. Investors in Chinese technology companies may be concerned that the government will choose to take more measures to block these companies from the US market due to security concerns.

The bottom line

The US government’s spending bill authorizes large sums of money for the domestic economy. Monitoring how the government spends its trillions of dollars is important for investors because that spending can have a significant impact on the stock market.

If you want to invest in US government spending without tracking any industries involved, consider the Q.ai Infrastructure Investment Kit. This is a mix of 156 AI-controlled companies that directly or indirectly benefit from the recent omnibus spending bill.

Download Q.ai today for access to investment strategies powered by AI.

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