According to estimates from the Congressional Budget Office, to pay for its coronavirus relief package, President Joe Biden it has to spend an average of $ 3.7 billion every day for the rest of this year. That’s $ 43,000 every second every day until midnight bells in 2022.
Josh Boak, of the Associated Press, reports that the president signed the aid package yesterday without having a comprehensive plan to distribute all the funds, which will be a central focus of the administration in the coming weeks.
“It’s taxpayer money that you want to pay fairly, but you also want to get out quickly,” said Jack Smalligan, a political member of the Urban Institute and a former White House budget officer.
Some expenses, such as cash transfers, can occur quickly. The Biden administration has already announced that it will send $ 1,400 in direct checks, a total of about $ 400 billion, starting this weekend. The administration will also continue with improved unemployment benefits for the 20.1 million Americans who are receiving some form of benefits. Both direct checks and unemployment benefits were part of Covid’s previous aid packages amounting to about $ 4 trillion, which means the government has systems in place to distribute the money.
But other elements are more complicated. There is $ 130 billion for K-12 schools to hire teachers, upgrade ventilation systems and make other improvements so that face-to-face classes can resume. Universities are entitled to $ 40 billion. Separately, $ 30 billion in housing assistance is available. And there are about $ 120 billion in vaccine distribution and coronavirus testing, among other public health expenditures. The White House said education departments will “start” distributing this billion to schools.
But some funds could take a long time to distribute, 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 could also share the cost very well after vaccination in most of the country.
“A fair process can intrinsically take time due to controls and balances and internal reviews,” Smalligan said. “It is probably his responsibility to get the money out quickly and for the state and local governments to spend the money over the next two years. You want to hire a teacher not for a month, but for years. “
The Treasury Department is planning how to better distribute about $ 350 billion in state and local aid. But he has not finalized a plan and consulted with governors, mayors and other officials.
“Our Treasury team will work to get this help as quickly as possible and the one that will have the greatest impact,” the Treasury Secretary said. Janet Yellen he said in a speech Tuesday for the National League of Cities. “To do that, we will need your opinion and advice.”