COVID-19 was a once-in-a-generation global tragedy that compelled the federal government to respond swiftly and decisively.
Indeed, a recent New York Times investigation found that Washington granted almost $5 trillion in COVID-19 stimulus funds to assist individuals, companies, and governments in coping with the pandemic’s impacts.
It might be beneficial to understand how this money was disbursed to determine how individuals and families got aid compared to other impacted parties.
How stimulus funds were divided throughout the United States.
Numerous people and companies benefited from the congressionally authorized COVID-19 relief packages. Specifically:
- Individuals and families got a total of $1.8 trillion in assistance, while businesses received $1.7 trillion.
- State and municipal aid of $745 billion were allocated.
- Healthcare expenditures totaled $482 billion.
- An additional $288 billion was spent on miscellaneous expenses.
- In other words, individual Americans received the lion’s share of the pie.
This is how funds were allocated to individuals and households.
Therefore, where did all of the money intended for people and families end up? The massive sum of money was allocated as follows to regular Americans still battling with the pandemic:
The stimulus package of $817 billion was deposited straight into American bank accounts. This includes $1,400 checks granted by the American Rescue Plan Act for individuals and dependents in 2021.
Unemployment benefits totaled $678 billion. This includes an additional $600 weekly payout from March through July 2020.
- $93 billion was allocated to an increased Child Tax Credit, which provided parents with more money per child than the current Child Tax Credit.
- SNAP and food assistance benefits totaling $71 billion
- $39 billion in unpaid educational debt
- Block grants totaling $28 billion for childcare
- Grants totaling $24 billion to daycare providers
- $14 billion in improvements to retirement plan rules facilitated penalty-free access to retirement assets.
- Other additional tax advantages totaling $24 billion, including an enhanced Earned Income Tax Credit
- Other assistance totaling $10 billion
These payments helped keep millions of people out of poverty. They may have sped up the economic recovery by allowing them to stay stable financially even while firms closed and unemployment skyrocketed.
On the other hand, the long-term repercussions are still being evaluated. Some analysts feel that offering so much direct assistance to Americans may have contributed to the high inflation rates currently afflicting consumers.
Regardless of the long-term consequences, it’s critical to remember that some Americans may still be entitled to a portion of their stimulus cash.
Those who did not get the full amount due should take the required measures to submit a 2021 tax return and claim their share of the government’s $1.8 trillion in tax relief.