Government officials say the risk of doing too little is much greater than the risk of getting too big, while many Republican lawmakers – and at least one well-known Democratic economist, Larry Summers – are concerned about the price of Biden’s plan. A group of 10 Republican Party senators proposed a $ 618 billion package, which would reduce the number of people eligible for stimulus payments and provide less school funding than the Biden plan.
Much of the $ 1 trillion previously authorized, but not yet spent, is scheduled to be used over time, and only a small portion will never be spent, according to the Responsible Federal Budget Committee, a fiscal oversight group that tracks spending.
About $ 500 billion remaining from March 2020
Congress approved three major stimulus packages in March and April. With $ 2.7 trillion, the CARES Act was the largest and put in place some of the main benefit programs that Biden is working to expand, along with lawmakers from both parties.
About 80% of the money from these previous accounts was disbursed. About half of what remains is related to ongoing spending on Medicaid and some long-term loans for small businesses, known as Economic Injury Disaster Loans. Corresponding Medicaid payments to states will continue as long as there is a public health emergency. Disaster loans are still available to small businesses. Although they bear low interest rates, they were not as popular as loans from the Check Protection Program, which are forgiven if used in eligible expenses.
It is possible that some of the relief programs, such as the 13-week extension of unemployment benefits under the CARES Act, may end up costing less than expected, according to the Responsible Federal Budget Committee.
School funds disbursed but not spent
The amount of money the federal government should give school districts to help them reopen buildings safely has emerged as one of the big differences between the Biden and Republican proposals for additional stimulus spending.
The White House calls for $ 130 billion, while the 10-Republican senator’s plan has proposed $ 20 billion, citing concerns that a large portion of the money authorized in previous packages remains unspent.
Although the $ 68 billion authorized in December was disbursed by the federal government, only $ 4.4 billion of that pot was actually spent by school districts last month. Government officials say the money is likely to be spent in the coming weeks and argue that funding for Biden’s plan would help prevent layoffs in the next school year, as well as assist in reopening.
Half of the remaining money went to the most recent stimulus
Almost half of the money not spent comes from the package approved by Congress in late December, when lawmakers passed a $ 915 billion relief bill that provided $ 600 stimulus payments, extended unemployment benefits, reopened the small business loan program and several other spending.
Part of that money is expected to last for months. For example, the Responsible Budget Committee estimates that another $ 120 billion will be spent on increasing federal unemployment and food stamps before the end of the year. Unemployment benefits expire in March and a 15% increase in SNAP benefits, which will continue for six months.
More than $ 200 billion remains for the Pay Check Protection Program, which recently reopened for small businesses for a second round of loans and is available through March. Money is going out fast. More than 891,000 loan applications, totaling $ 72 billion, were approved by the Small Business Administration in the first few weeks.
The vast majority of the $ 166 billion allocated for direct payments of $ 600 per person was delivered by the IRS, which began sending the money in late December. There are about $ 35 billion left, which could probably be claimed when eligible people who did not receive their money submit their 2020 tax returns.
Phil Mattingly of CNN contributed reporting.
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