Biden Admin Releases $12.7b for NY State, $4.3b for Nyc in Covid Stimulus, Taxes Won't Go Down
The Joe Biden government began administering $ 350 billion to state and local governments yesterday, as part of the $ 1.9 trillion COVID-19 relief bill approved in March. New York will receive $ 12.7 billion.
New York City, in particular, will receive $ 4.3 billion. Additional revenue for districts comes from a fund set out for each county in the state, bringing the cumulative contribution for NYC to about $6 billion.
Despite the fact that it is not the third most populous state in the nation, New York managed to slip into the third position in terms of overall numbers, behind only Florida, which was allocated far less. What is the reason for this? The answer is that, rather than reflecting the size of the general population, more funding will be allocated to states with the largest number of unemployed at the end of 2020.
The money, however, comes with conditions: The Treasury Department has a list of "qualified uses" that states and municipalities must follow.
The funds would be used for public welfare in order to offset the pandemic's detrimental economic effects; to compensate missing public sector revenue; to give bonuses to vital workers; and to finance sanitation, sewerage, and broadband Internet programs.
Senate Majority Leader Chuck Schumer (D-NY), who inspired the stimulus bill's creation, called the Treasury Department on Monday to request that funds be distributed to New York as soon as possible, according to Angelo Roefaro.
“After fighting this pandemic on the frontlines, state and local governments in New York and across the country were loud and clear: they needed help and they needed it quickly to keep frontline workers on the job and prevent brutal service cuts,” Schumer said in a statement.
Taxes won't go down for the city.
Both Mayor Bill de Blasio and Governor Andrew Cuomo praised the Senate's stimulus plan agreement reached in March. Nonetheless, it is not ruled out that taxes in the country's most costly economy will be increased.
That move will be damaging to New York's economic growth, as the city has been experiencing a demographic migration for years, exacerbated by the pandemic and an increase in violent crime.
Others warn about the serious impact government subsidies are apparently having on employment recovery and economic reconstitution, as more people have opted to postpone their possible return to the labor force participation.