Stimulus package where is the money going

That's because Wyoming had a higher unemployment rate 4. It depends where you're asking. Three out of every five dollars Q: What will you be looking at in the coming months in terms of the financial health of state and local governments and to see how the aid is performing?

Most studies show that the economic multiplier for spending at the local level generates 1. So, this part of the rescue package should give the economy a real boost. However, that multiplier assumes the money is spent on investments that generate a return, like education, infrastructure, parks and recreation, and public health. There is a risk that some states will use the federal funds to cut taxes instead of spending it.

Even though the legislation prohibits state governments from using the cash to offset new taxes, money is basically fungible. Getting the full economic benefit from the new spending will depend on whether the majority of state and local officials spend it wisely and coordinate with each other. In addition, this windfall of relief funding should make it possible to increase contracting opportunities for small and minority-owned and women-owned businesses.

It is important to develop oversight metrics to ensure that we are spending the funds effectively and equitably. Skip to main content. Human Rights. Public Finance. What happens if another round of government aid never comes to fruition? Stimulus packages comprise a range of different government taxation and spending measures. When it enacts fiscal stimulus, the government hands over cash, via direct subsidies, loans or tax incentives, to individuals, companies and even entire industries impacted by an economic downturn.

The human toll of a recession may be the worst part of any crisis. Recessions also leave intangible scars in addition to economic losses—all of which may be preventable, or reducible, with a well-structured and timely stimulus package. Some measures are focused on industries and economic sectors facing unique headwinds in a downturn.

And some are broadly targeted to boost spending across the entire economy. Industry bailouts are among the most common forms of fiscal stimulus. And these actions often take place independent of any broader economic downturn. They can be targeted at individual companies or an entire industry, and may include low-interest loans, loan guarantees and even direct subsidies.

The airline industry bailout after the terrorist attacks of September 11, is a good example of a narrowly targeted effort. The Great Recession saw industry bailouts that aimed to save entire swaths of the economy. Ironically, little to no TARP funding was used to buy assets of any kind, and the funding was instead used to bail out failed insurance giant AIG, the auto industry and a large portion of the U.

The Covid pandemic has driven the airline industry to the brink of bankruptcy once again, as nationwide lockdowns put most travel on ice. The aid came with strings attached, including commitments to freeze layoffs until Sept.

Taxes are said to be as inevitable as death—except during an economic downturn. Cutting certain taxes or providing tax rebates is a common component of stimulus packages. Whatever form they take, tax incentives aim to leave more money in the hands of businesses or in your pocket. The hope is that individuals and companies spend the extra money, thereby supporting more economic activity. In , President Gerald Ford proposed a stimulus package that mainly relied on tax policy to dispel the economic malaise that had settled over the U.

According to the Economic Policy Institute, the tax incentives helped drive a recovery in consumer spending that lasted through the end of the decade, which substantially aided the economic recovery. Perhaps the most effective means of providing fiscal stimulus is via direct payments to citizens. Compared to industry bailouts and tax incentives, direct payments in the form of stimulus checks are a relatively recent phenomenon.

These were part tax incentive, part direct stimulus payment. Yet as daunting as credit card debt can be, make sure paying it off doesn't leave you without any savings. Experts also say it's risky to depend on your credit cards for emergencies because banks can reduce your limit at any time. As such, she recommends immediately directing this cash to any essential needs that have been put on the back burner, including medications, groceries or a car repair.

Some people may see the payments as soon as this weekend. That way you can use other aid, such as stimulus checks and unemployment benefits, for other bills. People can get financial assistance for up to 18 months of rent. Another reason to move quickly: The stimulus package didn't extend the national eviction moratorium that's slated to expire at the end of March. Some states, however, have issued their own eviction bans. Many areas already had existing rental assistance funds , and it will be through one of these that you apply for the new aid.

In other cases, new programs will be created to disburse the money.