The Purposely Beefing to Revive Both Their Careers

The four spending bills that Congress passed before this year to address the coronavirus crisis amounted to one of the costliest relief efforts in U.S. history, and the undertaking shortly won praise across the political spectrum for its size and speed.

The $4 trillion total of government grants and loans exceeded the cost of 18 years of state of war in Afghanistan.

"We're going to win this battle in the very near future," Senate Majority Leader Mitch McConnell (R-Ky.) said later on the Senate canonical the Cares Act, the largest of the four measures.

Six months after, all the same, the nation'due south coronavirus battle is far from won, and if the prodigious relief spending was supposed to target the neediest and move the state across the pandemic, much of the money missed the mark.

President Donald Trump hands a pen to Senate Majority Leader Mitch McConnell (R-Ky.) after signing the Cares Act on March 27.
President Donald Trump hands a pen to Senate Majority Leader Mitch McConnell (R-Ky.) subsequently signing the Cares Act on March 27. (Erin Schaff/Bloomberg)

The legislation bestowed billions in benefits on companies and wealthy individuals largely unscathed by the pandemic, according to a Washington Post assay, while at the aforementioned time allowing special aid for unemployed workers to expire over the summertime and leaving some local public health efforts struggling for money to conduct testing and other prevention efforts.

The relief packages amounted to a massive economic Band-Assistance for what is fundamentally a wellness crisis, and much of the relief consisted of economic measures like to those that accept worked in previous recessions. But by failing to focus on containing the virus and the item harms of the pandemic, the relief packages distributed money to those with niggling need for information technology while allowing the illness, which is now more widespread than when the bills passed, to outstrip the aid.

To be sure, the legislation rendered essential assist to the unemployed and helped boost the economy by injecting it with billions of regime dollars. After the largest beak passed and the Federal Reserve took action, the stock market place soared and the economy recovered about half of the jobs lost during the early shutdowns.

But the stock market has slumped recently, the unemployment charge per unit stands at more than double pre-pandemic levels, and one of the few things both sides generally concord on is that trillions didn't end the crisis. Both Democrats and Republicans take proposed more relief, but developing another spending bill has been complicated by disagreements over what has been achieved and then far. Last week, Business firm Democrats approved a $2.2 trillion relief proposal that is unlikely to movement through the Republican-led Senate.

Treasury Secretary Steven Mnuchin, 1 of the key negotiators, said it is articulate that more relief is necessary.

Business reopenings and the Cares Act "accept enabled a remarkable economic rebound, but some industries particularly hard-hit by the pandemic crave additional relief," Mnuchin said during his Sept. 22 testimony to Congress. "I believe a targeted package is however needed, and the administration is gear up to reach a bipartisan agreement."

[The covid-19 recession is among the well-nigh unequal in modern U.S. history]

More than half of the $iv trillion approved by Congress this spring was targeted to businesses, according to a Washington Post assay based on figures from the Commission for a Responsible Federal Budget, an independent, nonprofit and bipartisan group. That and the other dollar figures in this story reverberate the amounts Congress authorized. In some cases, the amounts spent and the projected impact on the U.South. arrears are lower.

Much of the money was issued to companies regardless of whether they were impacted past the pandemic or used it to pay employees.

The bill included $651 billion in business tax breaks that often went to companies unaffected by the pandemic and others that laid off thousands of workers. The Cheesecake Manufactory, for example, furloughed 41,000 people, and said information technology will claim a revenue enhancement suspension worth $50 million.

Billions more went to the Federal Reserve to aid stabilize markets, and those efforts enabled many companies — including Wells Fargo, AT&T and Carnival, the prowl visitor — to infringe at lower rates while too laying off thousands of workers.

Finally, while a complete accounting of the $670 billion Paycheck Protection Program isn't likely to be available for months or years, companies that received the money were non compelled to use information technology to protect paychecks — and many didn't.

More than than 210 hotel owners received PPP funds, for example, and have yet to rehire most of their staffs, according to Unite Here, the union whose members staff the properties. Amongst them: Omni Hotels & Resorts, a concatenation controlled past Texas billionaire Robert Rowling. A grouping of Omni properties received betwixt $30 million and $71 1000000 from the PPP while besides furloughing workers and cutting off their health insurance coverage.

"This has hit pretty hard for me and my daughters," said Greg Kiraly, 43, who was a cook at the Omni hotel in Pittsburgh and who in recent weeks has constitute it "really humbling" to visit a food pantry for groceries. "Information technology was something I never thought I would have to exercise."

A hotel spokesperson, Kristen Cadenhead, said that the loan program has been "instrumental to our survival" and that the belongings has had to suspend operations because of extremely low business organisation volumes.

"They should have thought about giving that money to the workers — rather than [Rowling]," Kiraly said. "I tin can guarantee he hasn't walked to the food pantry to get a box of cornflakes to bring home to his kids."

Crisis continues simply aid running out

After the coin for businesses, the next largest portion of the trillions in relief money, nigh i-fifth, went to help workers and families. The bills supplemented pay and sent quondam economic impact payments of up to $i,200 per person to 159 million American families. Other smaller portions went to state and local governments, other public agencies and health-intendance providers.

The toughest aspect of the relief efforts, at least for many workers and their employers, is that while the government programs offered a few months of help, the assist ceased well before the crisis did.

The PPP was designed to give 8 weeks of help; unemployment supplements for millions of workers stopped this summertime; airlines that received federal help moved forward with plans to lay off tens of thousands of employees last Thursday, the first 24-hour interval on which the legislation permitted such cuts. The PPP aid was expanded in June to cover a 24-week flow.

Yet the pandemic continues: More people are dying daily of the coronavirus than at the time the police was passed, on average, and the jobs numbers announced Friday betoken the recovery has slowed even equally millions remain out of work. On Friday, President Trump said he tested positive for the virus.

Nobel Prize-winning economist Paul Romer, who devised a pandemic recovery plan, said the problem with the federal response is it treated the crisis largely as an ordinary recession and overlooked the need to suppress the coronavirus.

"Too many people were fighting the last war and non recognizing the new circumstances nosotros were facing," Romer said in an interview. "They missed this point: For whatever other recession, this may accept been a very good response. But because of this virus, it was doomed to fail."

Of the trillions authorized by federal relief bills through mid-Apr, merely a pocket-size portion was dedicated to the kinds of testing and contact-tracing programs most public wellness experts say are essential to reducing the virus. In the final relief bill, passed Apr 24, Congress canonical $25 billion for testing, but much of that has yet to be spent.

A $1.half-dozen trillion offer Mnuchin made to Business firm Speaker Nancy Pelosi (D-Calif.) last week included $75 billion for testing and tracing, co-ordinate to people familiar with it.

Romer's plan defended $100 billion to testing; bipartisan expert groups have estimated similar or even larger costs.

"This is why the stimulus money was a waste: It got people back out there, but it also increased the rate of spread of the virus," Romer said. "It was actually totally ineffective to stimulate the economy without implementing measures to restrain the spread of the virus."

The authors of a contempo National Bureau of Economic Inquiry paper similarly raised doubts about whether the traditional government response to a recession was appropriate.

"The only path to full economic recovery in the long run may be to restore consumer conviction by addressing the virus itself," co-ordinate to the newspaper by economists at Opportunity Insights.

Spending ballooned as panic mounted

The centerpiece of the federal relief programs is the Coronavirus Aid, Relief, and Economical Security (Cares) Act, the third and largest of the iv relief bills.

It came together during a time of vertiginous panic.

By mid-March, Congress already had assembled two relief bills: an $8 billion 1, and another for $192 billion. But even before the 2d was approved March 18, it was clear the moment demanded something more.

Stock prices had plunged by about a 3rd in merely a month; NBA games and Broadway performances were existence suspended; hospital staffs pleaded that without help, they might run out of intensive intendance beds and ventilators.

"Information technology is just a matter of fourth dimension before ICU beds are full," warned New York Gov. Andrew M. Cuomo (D).

Two members of the New York Fire Department's Emergency Medical Team wheel in a patient with coronavirus to Elmhurst Hospital Center in Queens on March 30. (Robert Nickelsberg/Getty Images)
Two members of the New York Burn Department's Emergency Medical Team bicycle in a patient with coronavirus to Elmhurst Infirmary Center in Queens on March thirty. (Robert Nickelsberg/Getty Images)

The negotiations rapidly snowballed into $2.6 trillion in spending.

Senate Minority Leader Charles E. Schumer (D-Northward.Y.) showtime rolled out a proposal March sixteen to spend at least $750 billion. It offered coin to pay for ventilators, hospital beds and masks, as well equally aid for the unemployed.

Days later, McConnell and Republican leaders announced a broader, more costly bill. Much of it was aimed at businesses, with a $300 billion fund for small businesses that would evolve into the PPP, more than $100 billion in tax breaks, and $208 billion in loans to airlines and other industries.

The plan as well gave individuals one-fourth dimension payments of equally much as $1,200.

The spending was now over $1 trillion, simply negotiations continued, with Mnuchin shuttling betwixt the offices of Schumer and McConnell, and the costs mounted. Additions to the bill included bumping unemployment checks to $600 a week, and billions more for state and local governments, wellness-intendance providers, and Federal Reserve programs to make corporate borrowing cheaper.

The bill passed unanimously in the Senate and by phonation vote in the Business firm. Trump signed it on March 27.

"This will deliver urgently needed relief to our nation'due south families, workers and businesses," Trump said. "And that'south what this is all near."

Stimulus payments

159 one thousand thousand

American families with income

below $150,000

received an boilerplate benefit of

$i,679

costing the U.South. a total of

$267 billion

Tax breaks for business owners

43,000

Americans with income

in a higher place $1 one thousand thousand

received an average benefit of

$i.6 million

costing the U.S. a total of

$135 billion

Data: U.S. Treasury Dept.; Joint Committee on Taxation

In recessions, governments often spend in order to pump upwardly flagging economical demand: This keeps companies and households afloat and encourages growth. Considering the effects of a recession are often widespread, information technology makes sense to distribute the money widely, economists say.

The Cares Deed and the other federal relief followed this arroyo on a k scale.

Critically, lawmakers issued benefits to companies without requiring them to show that they had been significantly affected by the pandemic. Near corporate recipients didn't take to promise to forgo layoffs, either.

But the current economic crisis is fundamentally different from past recessions. The lack of economical demand arises from a pandemic that keeps people from going out to spend, and the damage so far has been uneven. Hotels, restaurants, barbershops, movies and the similar take been hammered. Others such as insurance companies, technology firms and domicile goods manufacturers accept prospered.

[Coronavirus relief deal elusive equally Pelosi says Democrats await agreement from the administration]

Then while the Cares Human action and other bills spread out the money, much of it appears to accept benefited companies that don't need help.

There may be no clearer example of this than the Cares Human activity taxation breaks.

The legislation offered generous revenue enhancement breaks for businesses of any size, in any industry and regardless of need. Congress estimated they will toll the federal government $250 billion, an corporeality that is meaning fifty-fifty inside the scope of federal budgets: The IRS collected roughly the same corporeality from all corporate income taxes in 2019.

The largest chunk of those revenue enhancement breaks consisted of a $135 billion benefit for business owners. The measure gives an boilerplate benefit of $one.half-dozen million to 43,000 individuals with incomes in backlog of $one million, according to the Joint Committee on Tax, a nonpartisan congressional body. Applicants must have suffered an operating loss in 2018, 2019 or 2020 — so they're eligible even if their loss occurred well earlier the coronavirus appeared.

The IRS does not publicly share identities of these business owners. But dozens of public companies applied for a similar Cares Act tax break and have disclosed the benefit to shareholders. Many were unaffected by the pandemic.

Manulife, a Canadian insurance behemothic with $twenty billion in cash reserves, said that information technology is eligible for a $54 million tax refund under the new law. Owens & Pocket-size, a medical equipment maker, plans to claim $13 million, even though rising demand for personal protective gear sent its stock soaring. Organic grocery distributor United Natural Foods, where revenue jumped by $1 billion during the pandemic as more people cooked at dwelling house, practical to receive a $28 million taxation refund.

"We're thriving," Chris Testa, the president of United Natural Foods, boasted during a June trade briefing.

Jeff Swanson, a United Natural Foods spokesman, noted that the company has hired during the pandemic, extended temporary raises and offered additional employee health benefits. Owens & Minor did not respond to requests for comment, and a Manulife spokeswoman declined to comment.

Generally, the tax breaks were not well targeted to companies afflicted past the pandemic, according to an assay of hundreds of corporate filings conducted at the University of Chicago. Companies in the hardest-hitting industries and regions were no more probable to claim the tax breaks than others, researchers establish.

Moreover, while enriching shareholders, the revenue enhancement breaks offered fiddling incentive to keep workers. Companies that receive them are under no obligation to refrain from furloughs and layoffs.

The Cheesecake Factory restaurant chain furloughed 41,000 employees, paid $3.7 million in stock dividends to preferred shareholders and planned to claim a $50 million tax break under the Cares Act.
The Cheesecake Mill restaurant chain furloughed 41,000 employees, paid $3.seven million in stock dividends to preferred shareholders and planned to claim a $50 million taxation break under the Cares Act. (Christian Petersen/Getty Images)

The Cheesecake Factory, for example, furloughed 41,000 workers earlier this twelvemonth but fulfilled its commitment to consequence $3.7 million in stock dividends to preferred shareholders. It expects to receive a $fifty million revenue enhancement refund.

Among those furloughed from the eatery chain was bartender Austin Dombrosky, who was out of work for more than than eleven weeks.

"They're not worried well-nigh their employees," said Dombrosky, 31, who earns Utah's minimum wage of $2.13 an hour plus tips, which he relies on to pay rent and school tuition. "I see them looking at the money equally a condom net for future issues, just they could care less almost their hourly employees."

Matthew Clark, the Cheesecake Factory's master fiscal officer, said that the furloughs followed government-ordered store closures and that for their duration the company paid health-care premiums and offered a free meal daily to those out of work.

The tax breaks may even help some companies eliminate jobs. Boeing, which laid off 19,000 employees this year, said on a July earnings call that its Cares Act tax refund would aid cover the cost of the severance packages it owed departing workers.

A Boeing spokesperson declined to comment.

I taxation interruption in the Cares Act permits any company that lost money in 2018, 2019 or 2020 to utilize those losses to previous, more than profitable years. Some grade of this provision, called a "carryback" of internet operating losses, has been permitted by the U.Due south. tax code for over a century to help businesses that face ups and downs to fifty-fifty out their taxes.

The Cares Act supercharged this tax strategy, raising the limit on the amount of losses companies can use to outset taxes and permitting them to utilise those losses to earlier periods. By exploiting the difference in corporate taxation rates in previous years, companies with contempo losses tin can increase revenue enhancement refunds they received years ago by up to 67 percent.

1 of the reasons Senate Republicans decided to include this detail tax break is that it has been used in years past following U.Due south. disasters, according to a Republican aide involved in the Cares Act negotiation who spoke on the status of anonymity because the person was not authorized to speak publicly. Congress expanded this blazon of tax break following the 9/11 terrorist attacks, Hurricane Katrina and the Not bad Recession.

In designing the Cares Human action, lawmakers looked for "known concepts that we have used before or that nosotros can modify adequately modestly that are known to businesses and the IRS," the aide said.

The tax breaks will "unburden businesses and then they can go on employing those who are domicile caring for their families and helping to preclude the spread of the virus," said Sen. Charles East. Grassley (R-Iowa), who led Senate Republicans proposing the taxation breaks.

But rather than helping people and companies most affected past the pandemic, the tax breaks may simply enrich shareholders. Many of the firms claiming the taxation intermission are rewarding investors with dividends and share buybacks.

In August, for instance, the CEO of home insurer Assurant told investors it made sense to reward shareholders "given the attractiveness of our stock and strong capital position." It reported no negative impact from the pandemic, and paid investors $160 million in buybacks and dividends.

Assurant's Cares Act tax refunds totaled $205 million. Linda Recupero, an Assurant spokeswoman, said the company would have used existing tax laws to recoup some of this tax benefit fifty-fifty without the Cares Act.

Companies infringe cheaply, lay off workers

Other Cares Act programs as well offered billions in assistance to companies regardless of whether they needed it, and regardless of whether they would maintain their payrolls.

Officials have committed $75 billion, for example, for a Federal Reserve program that has helped lower interest rates on corporate bonds, allowing most companies to borrow more cheaply. The result has been a borrowing binge that made Apr the busiest month on tape for investment-grade corporate bond sales, according to Bloomberg.

All of these companies are weathering the pandemic: Procter & Take a chance issued $5 billion worth; Coca-Cola got $six.5 billion; Apple issued $eight.5 billion. Oracle had a $20 billion debt offering.

There are no requirements that they keep their workers on the payroll, and of the 34 companies that offered the largest corporate bond issues between March and August, i in 3 take reportedly had or announced layoffs, according to a Post review based on data from Due south&P Global Intelligence.

AT&T, for example, reportedly issued $12 billion in corporate bonds in May and within a few weeks appear it was laying off thousands of workers. Among them was Jay Toro, who worked in sales at a company store at Orlando's Altamonte Mall. Virtually the same time, Toro and his wife had their start child. They soon fell backside on hire and lost ane flat. They have a new identify now, but he's relying on savings and yet looking for a task.

"Information technology's not fair to leave [workers] high and dry out," Toro said. "I would tell them to just take it easy on their workers."

An AT&T spokesperson noted that the Fed'due south intervention did non amount to a direct subsidy and that laid-off employees would receive severance pay and health-care coverage for up to half-dozen months.

The largest single relief effort to help afflicted businesses and workers was the PPP, which offered "small" companies $670 billion in forgivable loans.

Businesses with up to 500 employees were eligible, though that limit was relaxed for eating house and hotel companies. To encourage companies to use the money to retain employees, the loans were forgiven if more threescore pct went toward payroll. To apply for the loans, companies had to certify they had experienced the "current economic uncertainty," just did not have to offer proof.

It was, co-ordinate to the Trump assistants, a resounding success.

"Thanks to our Paycheck Protection Program, we take saved or supported more 50 million American jobs," Trump said during his spoken communication at the Republican National Convention in August.

Cailin Schmeer, a Treasury spokesperson, said the administration's jobs estimate was based on economic modeling, although the assay was not published.

"It'southward called the Paycheck Protection Program," Mnuchin said in May. "The real purpose here was to get people back to piece of work."

Jamie Dimon, the chief executive of JPMorgan Chase — one of the banks that disbursed the money — also defended the programme, telling CNBC in August that it likely saved 30 1000000 to 35 million jobs. JPMorgan spokeswoman Patricia Wexler said they could detect no internal bank research explaining the number and did non know how Dimon came upwardly with it.

Economists who have studied the results, however, take come up with far more modest estimates of the program'south effects.

In the first two months of the plan, when shutdowns were the well-nigh widespread, the program saved just 2.three 1000000 jobs, a modest fraction of Trump'southward approximate, researchers from the Federal Reserve, the ADP Research Institute and MIT estimated. If their effigy is right, that means the plan laid out about $286,000 to save each job.

Virtually of the money likely accrued to owners of companies that were going to retain their employees anyhow, said David Autor, an MIT professor who was one of the researchers. He noted that if the government offers coin to people to take a certain activity — such every bit retaining employees — the first in line volition exist people who were going to do that anyway.

"The Paycheck Protection Program had grand ambitions," Autor said, noting that it aided millions of business owners. "But it does not appear to have preserved very many jobs."

Government statistics similarly point the money did not menses proportionally to the most affected industries and cities.

For example, in New York, which experienced the worst coronavirus outbreak in the The states, less than 20 percent of small-scale businesses were approved to receive PPP loans, economists at the New York Fed wrote in May, while in Nebraska more 55 percent of small businesses were expecting PPP funding.

"There is really a negative relationship betwixt COVID-19 cases per capita and the share of small firms getting PPP funding," the economists wrote.

The mismatch was non just geographical, either.

Industries relatively unaffected by the pandemic received large chunks of PPP money; meanwhile, some of the hardest-striking received less.

Share of loan money received compared to jobs lost across industries

Companies categorized every bit providing professional, scientific or technical services — such as legal advice, technology or accounting — suffered relatively light pandemic losses. For example, they accounted for just about 3 percent of all U.South. job losses betwixt February and April. Yet they received 13 percent of the loan coin.

[Faulty data collection raises questions near Trump's claims on PPP plan]

Job losses in the hotel and restaurant manufacture meanwhile deemed for about 32 percent of the nation'southward full, but those companies received but viii percentage of the PPP money.

1 key problem with the Paycheck Protection Program is that many of the most afflicted businesses saw no reason to use it. Why take a loan to hire employees dorsum for eight weeks, they asked, when the customers weren't returning?

Julie Stone who owns an EconoLodge in Corfu, N.Y., applied for a $60,000 PPP loan in April, and was quickly approved. However, she rejected the money after reading details of how the loans would be forgiven. (Libby March for The Washington Post)
Julie Stone who owns an EconoLodge in Corfu, N.Y., applied for a $60,000 PPP loan in Apr, and was quickly canonical. However, she rejected the coin after reading details of how the loans would be forgiven. (Libby March for The Washington Postal service)

Julie Stone, who owns a 73-room EconoLodge exterior Buffalo, practical for a $60,000 PPP loan in Apr. She was quickly approved, merely then decided not to take the coin.

"At the time we were renting 10 rooms a nighttime, v rooms a nighttime. I'thousand going to bring back all my staff to bring them back and kind of do nothing?" she asked. "Truth be told, we're so far down in the hole that $60,000 wasn't going to make or pause united states."

When the plan airtight Aug. 8, more than $130 billion of the coin Congress put up was left unused even though millions of jobs hadn't returned.

Like others in the hotel and restaurant business, Rock is still waiting for customers. In typical summers, many Canadian travelers would bulldoze south for vacations and stop at her place, but they didn't this yr. The nearby Six Flags amusement park never opened at all. She brought back nine of the 14 employees, but but 3 days a week. She asked family to assistance with cleaning and maintenance.

"Will I survive? I promise so," she said.

Even at companies that received PPP money, many paychecks were not protected — there were meaning job losses.

Potbelly, the Chicago-based sandwich chain, is worth an estimated $93 million and its backers include private disinterestedness and venture upper-case letter firms. In August, the company won a $10 one thousand thousand PPP loan.

Its restaurants serving downtown office workers take suffered massive losses, and the company has been forced to shut 16 stores and cut costs.

CEO Robert Wright said in a argument to The Post that "the [PPP] funds will become to our dedicated employees, to preserving jobs and to keeping shops open."

The company would non say, however, how many of its 6,000 employees it has furloughed or laid off permanently, just its financial filings indicate it has fabricated pregnant job cuts: Visitor spending on labor in the 2d quarter dropped by about a tertiary, a pass up of $10 one thousand thousand.

Among the jobs not likely to return are those at the Potbelly store in El Paso, which closed with the arrival of the pandemic, throwing eight or ix people out of work. Many of those employees started at $viii.25 an hour and sometimes worked off the clock to proceed the store open to go on costs under upkeep, said Uriel Sanchez, a trainer who left the restaurant earlier the closure.

 Uriel Sanchez, 24, a nursing student at Texas Tech University, left his job at a Potbelly Sandwich Shop in El Paso before the pandemic lockdown. The sandwich chain applied for and received a $10 million loan, but has had to close at least 16 stores so far and has laid off employees.
Uriel Sanchez, 24, a nursing student at Texas Tech University, left his job at a Potbelly Sandwich Shop in El Paso before the pandemic lockdown. The sandwich concatenation applied for and received a $10 million loan, but has had to close at least 16 stores so far and has laid off employees. (Joel Affections Juarez For The Washington Post)

"A lot of people, including me, did that considering they similar their jobs and they care most their co-workers," he said, adding that Potbelly cared about its employees and that he hoped the visitor would employ nearly of its PPP funds to proceed employees. "A lot of these people have big families and this is their only source of income."

Scant funding for pandemic 'hurricane'

Six months afterward the Cares Human action, however, what may be its most obvious flaw is that the virus has outdistanced the trillions of dollars in relief.

The reasons for the disease's persistence in the Usa are complicated, but there are signs that despite the historic spending so far, also little has reached some groups fighting to suppress the virus.

Under the Trump administration'due south "Opening Upwards America Again" program, the disquisitional tasks of testing and contact tracing accept been left to land and local governments. What that has meant in practice is that state and local health groups — community health centers, local wellness departments, nonprofit groups — have mobilized to set exam sites. Local health departments have sought to undertake contact tracing.

Exactly how they would pay for those efforts was less clear.

The relief bills devoted $13.four billion to local public health efforts, according to the Kaiser Family Foundation. An additional $150 billion was devoted generally to state and local governments, only public health agencies have seen just a small fraction of that. The relief bills also ordered insurance companies to pay the costs of testing for those they insure.

Neither Democrats nor Republicans retrieve that's been enough.

This month, Republicans offered a relief bill that included an additional $16 billion for testing and contact tracing, and in May, the Democrats called for putting upward $75 billion for those measures.

[How the White House is trying to convince America that Trump's illness isn't a big deal]

Meanwhile, other estimates say even more is necessary: Romer called for a $100 billion testing and tracing program; a bipartisan group based at Harvard including economists and public wellness experts estimated in April that appropriate testing needed as much as $300 billion over two years; a bipartisan group known every bit the United States of Care called for devoting $46 billion to contact tracing alone.

Jennifer Kates, a senior vice president at the Kaiser Family Foundation, said the local agencies directly tackling the pandemic accept been underfunded for years, and agrees that the money allocated to local efforts hasn't been enough.

"The pandemic is like a hurricane," she said. "This strong current of air is blowing and we're running around trying to patch up modest holes in a wall that'south toppling over."

Indeed, across the land, local wellness groups have struggled to confront the virus.

Logan Armstrong, a junior, works while sitting inside a painted circle on the campus lawn during the first day of fall classes at Ohio State University in Columbus, Ohio. Schools and businesses have struggled with how to reopen safely as the virus continues to circulate. Under the Trump administration's
Logan Armstrong, a junior, works while sitting inside a painted circle on the campus lawn during the first day of autumn classes at Ohio State University in Columbus, Ohio. Schools and businesses have struggled with how to reopen safely as the virus continues to circulate. Under the Trump administration'south "Opening Up America Again" program, testing and contact tracing take been left to state and local governments. (Joshua A. Bickel/AP)

In Ohio, local wellness commissioners estimated that they needed $110 one thousand thousand to cover enforcement of pandemic rules and assistance to reopen businesses and schools; so far, they've received a tenth of that.

In the Mississippi Delta, the Aaron E. Henry Community Wellness Center was running drive-through sites and testing 250 people a calendar week, but has scaled back to l a calendar week to conserve money and because the wait for the results was too long.

In Idaho, a nonprofit grouping dedicated to the pandemic rapidly set up three community testing sites around Boise, but ended them after 10 days considering of the budget, even though each site cost only $2,500 a day to run. Each location performed every bit many as 500 tests daily and, using a tech-enabled system from Medical Network Solutions, returned results inside 48 hours.

"Nosotros were running strictly on donations — and it is what it is," said Tina Upson, executive director of Crush the Curve, the grouping that ran the test sites. "We were stretched thin financially and nosotros didn't know if nosotros were going to keep our doors open up. Unfortunately, we couldn't afford to keep them upwards. It was a simple math problem."

THE COVID ECONOMY

The covid-xix recession is the most unequal in modern U.Due south. history

Job losses from the pandemic overwhelmingly affected low-wage, minority workers most. Vii months into the recovery, Black women, Black men and mothers of school-age children are taking the longest time to regain their employment.

The state of affairs may be most dire at modest local health departments.

At the Cooper Canton Public Health Centre in rural Missouri, officials said they've been forced to reject tests to some people, including those from outside the county and those who might experience sick merely lack respiratory symptoms.

"Nosotros've been operating on virtually nothing," said administrator Melanie Hutton. "Information technology's hard to say, 'No, you're non from our county, we're unable to test you.' Nosotros tin can't only take anyone."

With more coin, Hutton said, the department would accept offered more tests, set upwards a testing van or arranged for a more user-friendly lab. Currently, a staff member has to drive two hours to drop off samples.

The department might fifty-fifty have issued a mask order — but that likely would have faced a court claiming, she said, requiring a costly legal defense. In early September, the department received just $17,600.

"Correct now, we don't have any ability to enforce a mask gild," Hutton said. "And we cannot beget a lawsuit."

Nigh this story

Data for this story and accompanying graphics are based on estimates by the Committee for a Responsible Federal Budget, an independent, nonprofit and bipartisan group that has attempted to track every financial and monetary action taken past the federal authorities in response to the coronavirus. The CRFB's guess for all legislative measures, $iv trillion, represents the maximum amount of gross financial back up Congress has authorized in all its relief measures combined. It does non reverberate the bodily amounts that have been disbursed or the expected deficit touch on, both of which may exist lower for several categories of spending.

For each category of relief, The Washington Post assessed whether almost of its benefits appeared to be going to businesses, individuals, the health-care community, or the country governments and public agencies tasked with managing the coronavirus response. The Post categorized 1 of the largest chunks of spending, the $670 billion Paycheck Protection Programme, every bit a concern benefit. Although the PPP was designed to aid workers, businesses applied, received the checks and, in many cases, used the funds to pay rent, utilities and other costs instead of keeping people employed.

Atthar Mirza and Armand Emamdjomeh contributed to the graphics. Alyssa Fowers contributed to the reporting.

gillumnorted.blogspot.com

Source: https://www.washingtonpost.com/graphics/2020/business/coronavirus-bailout-spending/

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