Obama earmarks billions for technology projects

Most sweeping US technology package for decades will please technology contractors

Obama's stimulus package was signed into law yesterday

President Barack Obama's $787bn (£547bn) economic stimulus plan, which was signed into law yesterday, contained significant IT elements as part of the goal of building a high-tech infrastructure in the US.

Software, services and hardware companies will be eagerly watching the initiative, which includes more than $35bn (£24bn) earmarked for IT.

When launching the bill, Obama, a well-known BlackBerry user, said that providing technology infrastructure will equip the US for the 21st century.

"We'll do more to retrofit America for a global economy," he said. "That means updating the way we get our electricity by starting to build a new smart grid that will save us money, protect our power sources from blackout or attack, and deliver clean, alternative forms of energy to every corner of our nation."

Some $11bn (£7.6bn) has been ring-fenced for a smart electricity grid that would provide two-way information between electricity suppliers and consumers. A number of suppliers have expertise in this area: IBM is setting up a similar grid in Malta, while Accenture has consulted on a trial in Boulder, Colorado.

The largest chunk of cash - some $22bn (£15bn) - has been set aside for modernising healthcare IT, and in particular developing an electronic care record system - a project that has proved highly challenging in the UK.

Obama wants all patient records to be computerised within five years, saying that this will "cut waste, eliminate red tape and reduce the need to repeat expensive medical tests", a sentiment that echoed Tony Blair's enthusiasm to force through NHS IT reform.

Another $2bn (£1.4bn) is earmarked for broadband deployment grants to achieve Obama's vision that "a small business in a rural town can connect and compete with their counterparts anywhere in the world".

And as part of $21bn (£14bn) for education, money will be spent on "new computers, new technology and new training for teachers so that students in Chicago and Boston can compete with kids in Beijing for the high-tech, high-wage jobs of the future", according to the president.