According to estimates by the Congressional Budget Office, to pay out its coronavirus aid package, President Joe Biden should spend an average of $ 3.7 billion every day for the rest of this year. That’s $ 43,000 every second from every day until midnight on 2022.
Josh Boak, Associated Press, reports that the president signed the aid package yesterday without a comprehensive plan to distribute all the funds, which will be a core focus of the government in the coming weeks.
“It’s taxpayer money that you want to spend reasonably, but you also want to spend quickly,” said Jack Smalligan, a senior policy fellow at the Urban Institute and a former White House official.
Some expenses, such as cash transfers, can happen quickly. The Biden administration has already announced that it will send the $ 1,400 in direct checks – a total of about $ 400 billion from the weekend. The administration will also continue to provide enhanced unemployment assistance to the 20.1 million Americans who collect some form of benefit. Both direct investigations and unemployment assistance were part of Covid’s $ 4 billion aid package, meaning the government has systems to distribute the money.
But other elements are more troublesome. There is $ 130 billion for K-12 schools to hire teachers, upgrade ventilation systems and make other improvements so that personal classes can begin again. Universities are eligible for $ 40 billion. Separately, $ 30 billion is available for housing assistance. And there is about $ 120 billion for the distribution of vaccines and coronavirus tests, including public health spending. The White House said the billions for schools would be distributed by the education department this month.
But some funds may take time to disperse, as government agencies with their normal spending can take six to nine months to release funds through competitive grants or an application process. Schools and state and local governments can also spread the spending well after most of the country has been vaccinated.
“A fair trial can inherently take longer because of the checks and balances and the internal reviews,” Smalligan said. ‘To make the money flow out quickly and then have the state and local government spend the money over the next two fiscal years is probably responsible on their part. You do not want to appoint a teacher for a month, but also for years. ‘
The Treasury Department plans to distribute about $ 350 billion in state and local aid. But it has not yet finalized a plan and is consulting with governors, mayors and other officials.
“Our Treasury team is going to work to get this help out as quickly as possible – and the one that is making the biggest impact,” the treasury secretary said. Janet Yellen said at a Tuesday speech for the National League of Cities. “To do that, we need your input and advice.”