BALTIMORE (AP) – President Biden will have to spend an average of $ 3.7 billion every day for the rest of this year to repay his coronavirus aid package. That’s $ 43,000 every day every second until 2022.
With the amount of time it takes readers to reach this sentence, Biden needs to spend almost $ 800,000 to stay on track.
That, according to the Congressional Budget Office, was that even then, the Biden administration still had to spend $ 1.9 trillion, much to be spent in recent years as the vaccinated country struggled for economic health.
The president on Thursday signed a bailout package into law without a comprehensive all-out plan that will become the administration’s main focus in the coming weeks.
The level of spending costs testifies to the complexity of the disease, which has become so widespread in one year, and the economic pain it brings.
“It’s taxpayer money that you want to get out fairly, but you want to get it out quickly,” said Small Smoligan, a senior fellow at the Institute for Urban Development 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 $ 1,400 in direct inspections this weekend, for a total of about $ 400 billion. The administration will also continue to provide increased unemployment assistance to the 20.1 million Americans who collect some benefits. Both direct inspections and unemployment benefits were part of previous COVID assistance packages, which totaled about $ 4 trillion, meaning the government has systems in place to distribute the money.
But the other elements are more complicated.
There is $ 130 billion to hire teachers for K-12 schools, upgrade ventilation systems, and make other improvements so that classes can resume in person. Universities are entitled to $ 40 billion. There is $ 30 billion in housing assistance. And there is about $ 120 billion in coronavirus testing for vaccine distribution, among other health care costs.
The White House said billions for schools would be “distributed” by the Department of Education this month.
But some funds may take some time to allocate, as government agencies may normally spend six to nine months to provide funding through competitive grants or applications. Schools and state and local governments may incur costs after vaccination in most parts of the country.
“A fair trial, by its very nature, can take longer because of inspections, balances, and internal reviews,” Smalligan said. “The rapid outflow of money, at the expense of the state and local authorities for the next two fiscal years, is probably their responsibility. You want to hire a teacher for years, not months. ”
The Ministry of Finance plans to best distribute about $ 350 billion in state and local aid. It has not yet completed the program; it consults with governors, mayors and other officials.
“Our treasury team is going to work to get this aid as soon as possible, the one that has the greatest impact,” Treasury Secretary Et Anet Yellen told the National League of Cities on Tuesday. “To do that, you need your input and advice.”
Biden’s package also includes about $ 140 billion in temporary tax credits. This includes an extended child tax credit, which is paid monthly rather than once a year. Parents earning less than $ 150,000 can receive at least $ 250 a month from July.
“The real problems will appear in these new tax loan programs. Can the IRS manage this new monthly payment for tens of millions of American families? ” said Douglas Holtz-Eak, chairman of the Center for Right-wing American Action and former director of the Congressional Budget Office.
Holtz-Eaki said that the rate of error in these tax credit programs tends to be high as people move to new addresses, earnings change, and CAA may not be the right age for children. He noted that about a quarter of the payments made for the current income tax loan are wrong.
However, he noted that there were few economic risks for Biden as money was being released, as the economy was poised to grow rapidly at least at the strongest pace in at least two decades.
Holtz-Eaki said that the successful distribution of funds will really affect two goals, which, according to him, depend on epidemiological assistance. First, Biden’s team promotes child poverty reduction through tax credit and other assistance. Second, the term of the children’s tax range is coming to an end, it puts pressure on the Republican legislators not to hinder their extension before the 2022 elections.
That pressure could help Democrats try to expand their narrow majority in the House and Senate.
“It is a simple political trap they are trying to set,” said Holtz-Eaki.
But the cost of Biden’s package also reflects what has changed since the nation came to a standstill a year ago. An ambulance was needed at the time as the business closed. Money is now needed to speed recovery as vaccines are available.
“There is light at the end of the tunnel,” said Candle McCiran, a professor of economics at Vanderbilt University. “Biden’s plan targets areas of need, including the distribution of vaccines, the help of state and local governments, which will take time but will help the economy recover from the virus.”