The Treasury Department is launching its $ 350 billion program to distribute aid to state and local governments
The Treasury Department on Monday launched its $ 350 billion program to distribute aid to state and local governments, giving the American economy an additional boost after relatively modest renting in April.
The funding could give the economy a growth shock after it was reported by the government on Friday, as employers added a dismal 266,000 jobs in April, despite the unprecedented degree of federal aid given how difficult it can be to restart the economy is. Statistics from the Department of Labor show that local governments are still below about one million jobs since February 2020, just before the epidemic began after the closure of the pandemic.
Aid given to state and local governments has been pushed to a large extent by Democrats, who remember how these important sectors of the economy reduced recovery from the 2008 financial crisis and made relatively modest growth. Republican lawmakers generally opposed the aid because they said it would encourage wasteful spending and noted that state tax revenue was generally overturned by the recession.
“We all know that the greatest recovery occurred after the Great Recession,” said Jean Sparling, who is overseeing aid delivery for the White House. “This is a powerful response to the lessons of the past.”
Local governments should expect to receive funding in two installments, with half this month and one year left from now. States that jumped their unemployment rate by 2 percentage points relative to February 2020 will get their money in one payment, while the rest will receive their funding in two phases.