Breaking News:COVID Stimulus Money Favors Blue States

Breaking News:COVID Stimulus Money Favors Blue States

Republican members of Congress warned of this bias when the bill was up for debate earlier this year. Now, it appears the data has backed up some of those claims. “We show that arrival of the Democratic trifecta predicts a non-trivial increase in aid allocated to states whose delegations lean Democratic rather than Republican,” the report reads. “A fully Democratic delegation predicts a $300 per capita increase in federal funds under unified Democratic control of the federal government relative to the previous year’s divided government.” “They want to send wheelbarrows of cash to state and local bureaucrats to bail out mismanagement from before the pandemic,” Senate Republican Leader Mitch McConnell, R-Ky., said in March. “They’re changing the previous bipartisan funding formula in ways that will especially bias the money toward big blue states.”

“Alignment with the Democratic party predicts increases in states’ allocations through legislation designed after the January 2021 political transition. This benefit of partisan alignment operates through the American Rescue Plan Act’s sheer size, as well as the formulas through which it distributed transportation and general relief funds.” “COVID-19 relief legislation offers a unique setting to study how political representation shapes the distribution of federal assistance to state and local governments,” the report reads.

The study also compared the most recents stimulus bill – passed under a Democratic majority in the House and Senate with a Democratic president – to the federal funds handed to state and local governments in the previous Congress, under a divided government. Republicans argue those unemployment rates are the result of bad economic policies and unnecessarily long COVID shutdowns and that taxpayers in red states shouldn’t have to pay for their mistakes.

“Florida is doing phenomenal, Texas is doing phenomenal, the Midwest is, you know, fantastic – very little debt,” Trump said. The study also found some bias toward smaller states, that they received more funds per-capita than larger states. Trump compared those to red states, which will help foot the bill to “bail out” the Democrat-led states.

“I don’t think the Republicans want to be in a position where they bail out states that are, that have been mismanaged over a long period of time,” Trump told the New York Post in May. “You look at Illinois, you look at New York, look at California, you know, those three, there’s tremendous debt there, and many others.” Others on the right warned of a disproportionate distribution earlier this year. Former President Donald Trump said that the funds reward Democratic leaders in blue states that he says kept their states shut down for too long.

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