According to estimates from the Congressional Budget Office, to disburse its coronavirus relief package, President Joe Biden will have to spend an average of $ 3.7 billion a day for the rest of this year. That’s $ 43,000 per second from every day to midnight sips in 2022.
Josh Boak of the Associated Press reports that the president signed the aid package into law yesterday without a comprehensive plan to distribute all of the funds, which will be a focal point of the administration in the coming weeks.
“It’s tax money you want to spend fairly, but you also want to spend quickly,” said Jack Smalligan, a senior policy officer at the Urban Institute and a former White House budget official.
Some expenses, such as money 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 as of this weekend. The government will also continue to improve unemployment assistance for the 20.1 million Americans who receive some form of the benefits. Both the direct checks and the unemployed aid were part of Covid’s previous aid packages that totaled about $ 4 trillion, meaning the government has systems in place to distribute the money.
But other elements are more difficult. There is $ 130 billion for K-12 schools to hire teachers, upgrade ventilation systems, and make other improvements so that in-person classes can resume. Universities are eligible for $ 40 billion. Separately, $ 30 billion in housing aid is available. And there’s about $ 120 billion for vaccine distribution and coronavirus testing, in addition to other public health expenditures. The White House said the billions for schools would “begin” to be distributed by the Department of Education this month.
But some funds may take time to distribute as government agencies with their normal spending take six to nine months to release funds through competing exchanges or an application process. Schools and state and local governments can also spread out spending after most of the country has been vaccinated.
“A fair trial can inherently take longer because of the checks and balances and internal assessments,” said Smalligan. “Getting the money out quickly and then letting the state and local government spend the money over the next two financial years is probably responsible on their part. You want to hire a teacher, not for a month, but for years. “
The Treasury Department plans to best 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 will work to get this help as soon as possible – and the one that has the greatest impact,” Treasury Secretary Janet Yellen said Tuesday during a speech to the National League of Cities. “To do that, we need your input and advice.”