According to estimates from the Congressional Budget Office, to pay for his coronavirus aid package, the president Joe Biden is expected to spend an average of $ 3.7 billion every day for the rest of this year. That equates to $ 43,000 every second of every day until midnight in 2022.
Josh Boak of the Associated Press reports that the president signed the aid package into law yesterday, without a comprehensive plan in place to distribute all funds, which will be a central focus of the government in the coming weeks.
“It’s taxpayer money that you want to distribute fairly, but you also want to distribute quickly,” said Jack Smalligan, a senior policy researcher at the Urban Institute and a former White House budget official.
Some expenses, such as money transfers, can occur quickly. The Biden government has already announced that it will send $ 1,400 in direct checks – a total of about $ 400 billion – starting this weekend. The government will also continue to expand aid to the unemployed to the 20.1 million Americans who are receiving some kind of benefit. Both direct checks and unemployment benefits were part of Covid’s previous aid packages that totaled about $ 4 trillion, meaning that the government has systems in place to distribute the money.
But other elements are more complicated. There is $ 130 billion for elementary and high schools to hire teachers, update ventilation systems and make other improvements so that face-to-face classes can be resumed. Universities can receive $ 40 billion. Separately, $ 30 billion in housing assistance is available. And there are about $ 120 billion for distribution of vaccines and coronavirus tests, among other public health expenditures. The White House said the billions for schools “will begin” to be distributed this month by the Department of Education.
But some funds may take time to distribute, as government agencies with their normal expenses can take six to nine months to release funds through competitive subsidies or an application process. Schools and state and local governments can also distribute spending well after most of the country is vaccinated.
“A fair process can take more time because of checks and balances and internal analysis,” said Smalligan. “Having the money flow quickly and then having the state and local government spend the money over the next two fiscal years is probably your responsibility. You want to hire a teacher not for a month, but for years. “
The Treasury Department is planning how best to distribute around $ 350 billion in state and local aid. But it has not finalized a plan and is consulting with governors, mayors and other officials.
“Our Treasury team will work to get this help out as quickly as possible – and one that has the greatest impact,” Treasury Secretary Janet Yellen said in a speech on Tuesday to the National League of Cities. “To do this, we will need your opinion and advice.”