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Americans for Prosperity State-by-State Analysis Shows Massive Amounts of Existing Liquidity

May 20, 2020 by AFP

Arlington, Va. – Americans for Prosperity (AFP) today 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 President Tim Phillips issued the following statement on the report’s findings:

“With a staggering amount of money at their disposal, it’s clear that a massive federal bailout isn’t just bad policy – it’s not necessary. This report confirms that states across the country don’t need another trillion dollars from the federal government, they need their public officials to start making the tough, responsible decisions they were elected to make.

“The $3 trillion package from Speaker Pelosi is another blatant attempt to leverage this crisis to push through a partisan wish list and every senator should stand up and oppose it. Americans don’t need bailouts, they 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.

Background:

Americans for Prosperity recently released, Recover Stronger: A Starting Point to Build An Economy that Works for All, a set of principles and recommendations that offers lawmakers a starting point to build a stronger economy as the country recovers from COVID-19. As Congress considers additional massive spending bills, the guidance is intended to present better alternatives to help the economy recover – and ultimately create a new, stronger economy.