The Economic Stimulus Act of 2008 was an Act of Congress signed into law by President George W. Bush in February 2008 that contained a three-pronged strategy intended to boost the flagging U.S. economy. Its growth strategies included tax rebates to taxpaying citizens and tax incentives focused on business investment.
In late 2007, the U.S. economy was threatening to fall into recession, and the Economic Stimulus Act was the Republican administration's attempt to use fiscal policy to correct this downward movement. The stimulus bill also included provisions that focused on increasing the oversight and raising the quality limits on mortgages that were eligible for purchase by government agencies, particularly Fannie Mae and Freddie Mac. This action was in response to the developing subprime mortgage crisis that was triggering a massive credit crunch at the time.