Studies show that the economic multiplier for every dollar spent at the state and local level is at least 1.3 times. Unemployment remains well above pre-pandemic levels and many local governments need to plug budget holes in schools, housing, parks, public health, transit, local services, social programs, and deferred maintenance…. This money is intended to 'mitigate the fiscal effects stemming from the public health emergency' – which means to replenish lost revenue, restore local services, and to hire back some 1.3 million state and local workers laid off in the past year….įor distressed states and communities, the Covid-19 Bill will provide critically needed funding. The bill provides $195 billion for states, territories, and tribal governments and $130 billion for cities and counties, with few strings attached.

Some of the money will go to unemployment, Medicaid, the Payment Protection Program and other aid, which makes it difficult to redistribute funds to other programs.“The Covid-19 rescue package is a potential game-changer for the finances of state and local government.

The funds yet to be spent were set aside for programs at a later time, according to the previous relief bills. 'Just because there's money unspent doesn't mean there aren't still needs,' Marc Goldwein, senior vice president and senior policy director for the CRFB, told Politico on Feb. That money, however, is not just sitting in a bank account without any designation. The CRFB estimates that 15% of the plan, or $300 billion, goes to 'long-standing policy priorities that are not directly related to the current crisis.' What about the $1 trillion of COVID relief that hasn't been spent yet?ĭuring the debates in both the House and Senate, a common Republican complaint about the bill was the claim that there's $1 trillion left over from the previous relief package passed during the Trump administration.Īccording to the COVID Money Tracker, there's approximately $1 trillion in legislative actions still unspent. The rest of the $1.9 trillion, however, doesn't go to waste. This includes money to distribute vaccines, conduct coronavirus testing, buy protective equipment and fund other assistance for tackling the virus. The bill has $110 billion going toward fighting the pandemic, according to the Committee for a Responsible Federal Budget. However, some officials criticize the bill by questioning everything other than money that goes directly into fighting the virus. 'Lawmakers were trying to avoid doing too little, and on that, I think they have certainly succeeded and many households will see a significant income boost in 2021.' 'The bill provides funding for key public health support and for important programs, like enhanced unemployment insurance, to help people make ends meet as we head into an economic recovery,' said Erica York, an economist at the Tax Foundation. Both are important to help with the recovery of the economy. When Biden signed the bill Thursday, he said it'll give 'people in this nation, working people, middle-class folks, people who built the country, a fighting chance.' The plan focuses on economic relief for those affected by the pandemic, but it also provides funding for efforts to combat the virus itself. I keep hearing 90% of the bill has nothing to do with COVID. Low Income Home Energy Assistance Program Combined, they make up $888.65 billion or 47% of the $1.9 trillion. These benefits total approximately another $78 billion going to those in need. The Low Income Home Energy Assistance Program ($4.5 billion).Extended SNAP benefits ($1.15 billion).The purchasing and distribution of food for needy individuals ($4 billion).Subsidized COBRA coverage for laid-off workers ($14 billion).An extension of paid sick leave and the employee retention credit ($14 billion).Mortgage payment assistance ($10 billion).Emergency rental assistance ($30 billion). The relief bill is a deficit-financed distribution of funds, which means it lacks the difficult trade-offs that opponents can wield so effectively against, say, health care legislation.There are also other provisions in the bill that will go to those in need, such as: These provisions provide funds that go directly to qualified Americans and account for 43% of the $1.9 trillion plan. Expanding the child tax credit, child care tax credit and earned income tax credit ($143 billion).Extending enhanced unemployment ($246 billion).Sending out the $1,400 stimulus checks ($422 billion).Three of the priciest policies in the American Rescue Plan go directly to Americans, according to the Committee for a Responsible Federal Budget. How much are we really getting from Biden's plan? I hear only 9% of the $1.9 trillion bill is going to Americans.

Relief bill