In the wake of a rapidly deteriorating economic picture and year-long recession that the Congressional Budget Office (CBO) has called the most severe since World War II, Congress passed the American Recovery and Reinvestment Act of 2009 (ARRA). This report discusses ARRA's "general oversight provisions" and several related issues for Congress. For purposes of this report, the term "general oversight provision" means an oversight-related provision that addresses multiple programs, agencies, or appropriations accounts. Provisions that are specific to a single program or appropriation (e.g., appropriations set-asides and reporting requirements) are excluded from the report's scope. The provisions provide for, among other things, establishment of a Recovery Accountability and Transparency Board, numerous reporting and evaluation requirements, and increased resources for agency Inspectors General (IGs). The topic of subsequent implementation of the oversight provisions, including actions by executive agencies and the Office of Management and Budget (OMB), is not included in the scope of this report. Nevertheless, even before considering experience with implementation, several broad issues related to ARRA oversight may be of interest to Congress. These include assessments of ARRA's role in achieving economic objectives. Typical objectives of a fiscal stimulus policy relate to increasing economic activity in the short term, compared to what would have happened without a stimulus. In addition, some stakeholders have emphasized that stimulating the economy in the short term alone is not a sufficient definition of "success." From this perspective, the manner in which spending, tax, and other public policies are implemented, and also the impacts of these policies, may be important. All of these perspectives appear to have been included among the law's explicit purposes and "general principles." Given ARRA's direction to "commenc[e] expenditures and activities as quickly as possible consistent with prudent management" ( P.L. 111-5 , Section 3), difficult trade-offs among goals may be inevitable. Over time, Congress may consider whether existing management and oversight mechanisms, in combination with ARRA's additional provisions, adequately support effective management and oversight of ARRA implementation. The experience with ARRA also may offer lessons learned for the "normal" systems of oversight that correspond to non-ARRA-related funding and operations. Beyond the immediate situation, additional oversight issues for Congress may relate to longer-term questions. These include how to build capacity within agencies to respond effectively to crises. Questions also may arise regarding how to build capacity in agencies and government overall to anticipate crises, mitigate their risks, and avoid preventable crises. This report analyzes these and other issues after reviewing how the oversight provisions were developed and providing an overview of the enacted provisions themselves, including related appropriations and reporting requirements. Examination of how ARRA and its general oversight provisions were developed may provide perspectives on congressional objectives associated with the legislation. In addition, reflection on the development of the provisions may suggest opportunities to make enhancements in ARRA's existing oversight provisions or to address any perceived gaps in the provisions' coverage of significant matters. On November 7, 2008, then President-elect Barack Obama held his first news conference since the presidential election. In view of continued monthly job losses, he called for a "fiscal stimulus plan that will jump-start economic growth." In response to a question about the prospect that "a stimulus package may be in trouble" during the remainder of the 110 th Congress, the President-elect said "[i]f it does not get done in the lame-duck session, it will be the first thing I get done as President of the United States." Later that month, he announced he had directed his transition "economic team to come up with an Economic Recovery Plan." On December 23, 2008, Vice President-elect Joe Biden said "there will be no earmarks in this economic recovery plan." After the holidays, President-elect Obama referred to the plan as an "American Recovery and Reinvestment Plan." He reiterated on January 6, 2009, that under the economic recovery plan, "[w]e are going to ban all earmarks." He also said that the plan "will set a new higher standard of accountability, transparency, and oversight." In the wake of a rapidly deteriorating economic picture, CBO released an economic forecast on January 7, 2009. CBO issued the forecast "several weeks earlier than usual to aid the new [111 th ] Congress in its deliberations." The Senate Budget Committee held a hearing on the forecast the next day. In the forecast, CBO said that a "downturn in housing markets across the country, which undermined the solvency of major financial institutions and severely disrupted the functioning of financial markets, has led the United States into a recession that will probably be the longest and the deepest since World War II." To help establish a basis for Congress to consider alternative courses of action, the forecast was done under an assumption that current laws and policies regarding federal spending and taxation would remain the same. CBO noted, for example, that the forecast did not include "the effects of a possible fiscal stimulus package." CBO anticipated that the recession, which began in December 2007, would last until the second half of 2009. Economic output over the next two years, CBO estimated, would average "6.8 percent below its potential—that is, the level of output that would be produced if the economy's resources were fully employed." CBO explained that this gap in gross domestic product (GDP)—a "GDP gap"—is "the difference between real (inflation-adjusted) gross domestic product and its estimated potential level (which corresponds to a high level of resource—labor and capital—use)." In accompanying testimony, CBO's acting director said that "[m]any economists believe that a stimulative fiscal policy (that is, an increase in spending or reduction in taxes designed to foster faster economic growth in the short run) is desirable under the current economic conditions." Congress soon considered legislation intended to diminish this GDP gap and, in the process of doing so, to bolster employment and address perceptions of other economic and policy problems. An early version of the legislation reportedly was drafted by then President-elect Barack Obama's transition team working with Members of the House Committee on Appropriations. On January 14, 2009, then OMB Director-designate Peter Orszag appeared before the Senate Committee on Homeland Security and Governmental Affairs for a confirmation hearing. Among other things, he was asked about his plans for oversight of the economic stimulus package that was anticipated to be considered at the beginning of the 111 th Congress. Director-designate Orszag said the incoming Administration would favor creating a special oversight board. The board would be composed of relevant IGs and chaired by a newly established White House position of Chief Performance Officer (CPO). The board "would review problems and ... would conduct regular meetings to examine specific problems that might be identified." Director-designate Orszag also said the Administration planned "to create a website that will contain information about the contracts and include PDFs [of] contracts themselves." Soon after President Obama was inaugurated, the Obama Administration established a website called Recovery.gov in anticipation of enactment of stimulus legislation. The home page explained the Administration's future intentions for the website: "Check back after the passage of the American Recovery and Reinvestment Act to see how and where your tax dollars are spent. An oversight board will routinely update this site as part of an unprecedented effort to root out waste, inefficiency, and unnecessary spending in our government." Numerous oversight provisions subsequently were included in economic stimulus legislation considered by the House and Senate. On January 21, 2009, after mark-up of a draft bill by the House Committee on Appropriations, the committee issued a press release that characterized the stimulus as providing "unprecedented accountability" (see Box 1 ). On January 26, 2009, the American Recovery and Reinvestment Act of 2009 ( H.R. 1 , 111 th Congress) was introduced in the House. Shortly before introduction, the White House reportedly had released a document describing several goals of the legislation, both in terms of economic stimulus and achievement of various public policy objectives relating to energy, health care, education, infrastructure, tax policy, income maintenance, and accountability. On January 28, the House passed an amended version of the measure by 244-188. Senate versions of components of ARRA were introduced and reported on January 27 ( S. 336 , with written report) and January 29 ( S. 350 ). At the same time, general concerns had been expressed about the capacity of agencies and "a depleted contracting workforce" to spend funds rapidly "while also improving competition and oversight." In addition, the question had been raised whether IGs and the Government Accountability Office (GAO) have sufficient resources to conduct oversight of the stimulus legislation. Situated in the context of these concerns, however, many observers felt quick action on the stimulus legislation was critical. According to one press report, "[w]hile economists remain divided on the role of government generally, an overwhelming number from both parties are saying that a government stimulus package—even a flawed one—is urgently needed to help prevent a steeper slide in the economy." The Senate amended the House version and passed an amendment in the nature of a substitute on February 10, 2009, by a vote of 61-37. A conference report, which included a joint explanatory statement, was filed on February 12, 2009, stating that it contained no congressional earmarks, limited tax benefits, or limited tariff benefits. The conference report was agreed to in the House on February 13, 2009, by a vote of 246-183, with one Member voting present. On the same day, the Senate agreed to the conference report by a vote of 60-38, clearing the measure for presentment to the President. President Obama signed the measure into law on February 17, 2009. Several aspects of ARRA establish the context in which the legislation's general oversight provisions will operate.