The federal government has announced it will spend $400 billion to help pay for the $800 billion stimulus package that was passed by Congress on Monday.
The White House said that this amount is more than the entire stimulus package for 2011, which was $500 billion.
The president is calling it the biggest spending bill in history.
The stimulus package includes $500 million for a new tax credit that will help people pay their mortgages, and $200 million for Pell Grants that provide free college for low-income students.
It also includes $100 million for job training and job-placement programs.
President Barack Obama said in a statement that the stimulus package would “provide relief for middle-class families, boost economic growth, and boost job creation for American workers.”
Obama said the spending bill will allow the Treasury Department to create more than 7 million jobs and will help the economy create more goods and services and raise the unemployment rate.
The unemployment rate will fall from 8.5 percent to 7.5.
The deal is the latest effort by the White House to try to boost the economy after the devastating effects of Hurricane Sandy hit the East Coast.
Obama said it would create 12 million new jobs.
The spending bill includes $400 million for the new tax credits that will give people a refundable tax credit of up to $500.
That money is part of a $1.5 trillion stimulus package, and is part the $1 trillion stimulus plan passed by the Senate on Monday, according to the White, House.
The tax credit will help consumers save for a down payment, buy a home, or rent an apartment.
It will also help families save for college, the White said.