The New York Times, among others, is reporting that a deal has been reached that will almost certainly pass both the House and Senate on its way to the White House. This leaner version of the package, $789 billion, marks a reduction from the fluctuating $800-900 billion range we were seeing in prior negotiations.

The full text of this bill is not out yet, but the cuts appear to center around state governments, education, and health care. The Times writes that “the final deal slashed $35 billion from a proposed state fiscal stabilization fund, eliminated $16 billion in aid for school construction and sharply curtailed health care subsidies for the unemployed.” The merits of the overall package and the import of these cuts aside, this is not the best of news from a solar standpoint. As we’ve discussed previously, state fiscal situations are going to continue to play a massive role for the solar industry until federal carbon and energy reform legislation becomes a reality. In that environment, state budgets in crisis will reduce or stall tax incentives and other similar measures. As well, the lack of funds for school construction might well be a problem in reducing the possibility for green building projects and other integrations of solar; this is, however, more hypothetical. The problems at the state level are very real.

All that said, the stimulus package is a go, and that’s bigger news in all regards than the particular failings of this last round of negotiations. We’ll keep an eye on the legislation as it moves through its final stages.