Fact-checking a GOP talking point on state, local relief in the American Rescue Plan

Link: https://www.politifact.com/article/2021/mar/19/fact-checking-gop-talking-point-state-local-relief/

Excerpt:

• The American Rescue Plan signed by President Joe Biden allocates state and local aid based on the extent of unemployment in a state in late 2020. Critics say this punishes states that opened their economies earlier, under the assumption that their unemployment levels were lower.

• It’s not so clear-cut. Preliminary academic research shows that government policies on reopening had only a modest impact on unemployment. States that depend on especially hard-hit industries like tourism and oil and gas show high unemployment regardless of the government policy.

• Experts say that no method for targeting aid to the states is perfect; each has pluses and minuses.

Author(s): Louis Jacobson

Publication Date: 19 March 2021

Publication Site: PolitiFact