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American Recovery and Reinvestment Act of 2009: State-By-State Estimates of Key Provisions Affecting Low- and Moderate-Income Individuals
February 25, 2009
The American Recovery and Reinvestment Act of 2009 is designed to boost employment and the economy. It contains a number of spending and tax measures crafted to inject more aggregate demand into the sagging economy. This paper provides state-by-state estimates for a number of the major spending and tax provisions that will affect low- and moderate-income Americans (some provisions cannot be allocated on a state-by-state basis).
The provisions providing relief to low- and moderate-income families and to states facing serious budget shortfalls are among the most effective economic stimulus in the package. Low-income and unemployed families will spend benefits or tax refunds quickly to meet household expenses. The state fiscal relief will lessen the degree to which states will have to enact very painful budget cuts and tax increases, both of which have a negative effect on the economy. In addition, the measures included in the package will help avert severe hardship among low-income populations and preserve some needed state and local services.
The paper provides short descriptions and tables with estimated state-by-state impacts of several key provisions. These estimates are based on the best available data to CBPP. The agencies that administer these programs will provide the official allocations of formula grants in the coming days.