We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.
A Look At How the U.S. Spent Covid Relief in 2021
The onset of the coronavirus pandemic triggered waves of layoffs and interruptions in benefits that plummeted the economy into uncertainty. To supplement the economy and ensure Americans could stay afloat, the federal government passed the CARES act. Just over a $2 trillion package, it included relief like direct checks to Americans, money for unemployment programs and support for small businesses.
The initial stimulus package was passed in a matter of weeks, though progress on the next stimulus package has slowed significantly. We examined and compiled federal agency data to break down U.S. spending in response to Covid-19.
Total US spending in response to COVID-19
The CARES act is the big name that everyone knows, but three main phases of legislation passed in response to the pandemic.
- Phase 1: Coronavirus Preparedness and Response Supplemental Appropriations Act — $8.3 billion for small business loans, vaccine development and state departments.
- Phase 2: Families First Coronavirus Response Act — $100 billion in tax credits to support unemployment insurance, paid sick leave and food assistance for families.
- Phase 3: The CARES Act — A massive $2.2 trillion, 800-page long bill packed with money for things like small businesses, state governments, and stimulus checks.
Total budgetary resources for COVID response has totaled to $2.6 trillion — equal to 45% of federal spending for all of 2019. The CARES act had the largest budget allotted for several sectors. The most being:
- Business support — $500B
- Small business resources — $350B
- Stimulus checks — $300B
- Unemployment benefits — $250B
- State governments — $150B
- Health — $140B
- FEMA — $45B
- Agriculture — $35B
How federal dollars move to the American people
Once the $2 trillion dollars of the CARES act was passed, it didn’t go straight into the hands of Americans. Instead, there’s a set three-step process the funds passed through to move from the government to the people who need it. As of September 30, $1.55 trillion have been paid out and $1,58 trillion are still waiting in the obligation stage.
- Appropriations — The process all starts with the Treasury, who will issue the funds to the corresponding agency spending accounts.
- Obligations – Once agencies have received their portions of the funds, they begin to make obligations through contracts, grants, loans or direct payments.
- Outlays — At this stage, the money is finally authorized to be paid and is sent to where it was specified.
Government funding per agencies
The CARES act’s significant budget came from a total of 38 federal agencies that contributed to COVID-19 relief. The agencies that authorized the largest amount of spending were the Department of Treasury, Small Business Administration, Department of Labor and the Department of Health and Services. Given the areas that were hit the hardest — small businesses, health and education — it’s no surprise that these federal agencies are the top contributors.
The job of the Treasury is to manage the U.S. government’s finances and foster a healthy economy. The onset of the pandemic and state lockdowns created a crisis for businesses, and workers, making it the Treasury’s top priority to stabilize the economy.
|Agency||Budgetary Resources||Total Obligations||Total Outlays|
|Department of the Treasury||$958,412,379,013||$486,008,127,494||$472,732,704,631|
|Small Business Administration||$760,982,000,000||$586,594,046,564||$577,762,485,048|
|Department of Labor||$358,432,252,644||358,305,128,688||$345,492,643,294|
|Department of Health and Human Services||$250,355,400,000||$158,131,939,519||$113,457,433,836|
|Department of Agriculture||$73,217,050,000||$4,287,030,566||$2,488,637,863|
|Department of Education||$57,677,719,728||$57,037,499,320||$38,094,701,549|
|Department of Homeland Security||$46,162,187,000||$29,823,691,842||$126,235,093|
|Department of Transportation||$36,085,137,000||$33,685,116,905||$16,122,983,147|
|Department of Veterans Affairs||$19,629,500,000||$7,480,399,531||$5,530,395,939|
|Department of Housing and Urban Development||$12,494,866,182||$6,793,398,799||$2,347,219,760|
With the immediate need for small business and worker relief, as well as protective equipment for medical professionals and technology for schools, it makes sense that the Department of Labor, Health and Education also tops the list in contributions.
Financial assistance per state
The money given to states was intended to pay for all coronavirus expenses from March 1 through December 30 — every state got $1.25 billion in relief, regardless of its population. While that sounds fair, it meant that states with the lowest populations received more money per capita, and states with epicenters — like New York — burned through their resources in a matter of months.
Every state is battling its problems, whether it be case numbers or halts in production. But, the way relief was distributed caused its own set of problems. Wyoming, North Dakota, New Hampshire, Vermont and West Virginia were among the states that received the least amount of funds. For perspective, North Dakota has a population of 762,062, while New York City alone has over eight million residents.
We welcome your feedback on this article. Contact us at email@example.com with comments or questions.
Image Credit: Sharrocks/Getty Images