State-by-State Analysis Shows Iowa with 5 Billion of Existing Liquidity

May 20, 2020 by AFP

Grassroots group calls on Senate to reject $3 trillion bailout

DES MOINES, Iowa. – Americans for Prosperity (AFP) released a report detailing the nearly $2 trillion in federal assistance already available to state and local governments, including more than $1.1 trillion that has been provided in the wake of the outbreak of COVID-19.

The analysis, conducted by AFP Policy Manager Matthew Dickerson and AFP Senior Fellow Alison Winters, also calculates the flexible federal assistance available to each state. The report suggests that this unprecedented amount of federal funding combined with responsible decisions at the state and local level should allow state and local governments to maintain necessary services without expediting a massive bailout bill from Congress.

Click Here to Read: Federal Budget Assistance for State and Local Governments

AFP-Iowa State Director Drew Klein issued the following statement on the report’s findings:

“With a staggering amount of money at the state level, it’s clear that a massive federal bailout isn’t just bad policy – it’s not necessary. This report confirms that Iowa has over 5 billion at its disposal. Our lawmakers need make the tough choices they were elected to make and allocate the funds we already have responsibly.

“The $3 trillion package from Speaker Pelosi is another blatant attempt to leverage this crisis to push through a partisan wish list and our Senators should stand up and oppose it. We don’t need bailouts. We need a plan to safely reopen the economy and policies that will help us recover stronger than before.”

Summary of Key Findings:

The federal government will be providing at least $1.9 trillion in total assistance to state and local governments this year. That includes $790.7 billion in grants to state and local governments in pre-COVID funding, plus $1.1 trillion in additional support for state and local governments in response to COVID-19.
Instead of pushing for more funding, state and local policymakers should illustrate how they are utilizing the currently available federal funds to make the responsible decisions that will prioritize necessary services for their residents.
State and local policy makers should also enact reforms and spending reductions to address state budget challenges, many of which are the result of fiscal mismanagement prior to the COVID-19 crisis.