With the stimulus bill heading to President Joe Biden’s desk, blue states are about to get a windfall. $350 billion dollars is being set aside for states and local government and it seems the bluer the state, the more money it gets.
That’s primarily because the criteria used to determine how much a state receives is not based on population, but rather, how many people are out of work. Blue states were quicker to shut down and remain shut down over the last year compared to their red state counterparts.
States like Florida that managed the Covid-19 crisis well, are effectively being financially penalized for success. Florida will get less money than New York, despite the sunshine state having a larger population than New York.
New York is still run by Democrat governor Andrew Cuomo (who is accused of having lied about Covid-19 deaths in nursing homes) and is set to receive $23.5 billion compared to Florida’s $17.5 billion. New York closed its economy earlier and longer than Florida. As a result, New York’s unemployment rate in December was 8.2%, compared with Florida’s 6.1%.
California is the biggest winner of all. As the most populous state with a very high unemployment rate, California will receive $42.3 billion.
This money comes in addition to the $1400 stimulus checks being sent to most Americans. The question now is can we afford this? And, how serious is the threat of inflation? (Very serious.)
Meanwhile, are you wondering how much you’ll get in your stimulus check? Click here to find out how much you will receive from Uncle Sam.
And, WHEN will you get your stimulus check? Find out here.