Are the Federal Stimulus Fund Requirements Being Met?
What Happened to the Stimulus Money?
To aid a stagnant and flagging economy, the Obama administration has handed out a lot of money. They have handed out billions, to be exact. Where did the stimulus money really go? It may be a little early to determine that just yet, but it is not too early to begin keeping tabs on where the money is going and how it is being utilized. After all, it is a lot of money and it is going fast.
President Obama put the stimulus package into play in February of this year. That was over 100 days ago. In that time, the government has allocated major dollars to fund grants and projects. In the beginning stages of the stimulus package, money was being handed out at a rate of $1.3 billion a day.
At a cost of over a billion dollars a day, the government was able to provide the funding for many large scale projects. A very large portion of this money was doled out to individual state governments. This allowed them to aid needs that varied by states. Much of this economic aid was used to fund schools and provide medical care for those in need. These are large scale projects that consume money faster than others.
Now that the major projects have received the needed aid, focus has shifted to smaller projects. This has dropped the government’s daily stimulus payout to around $1 billion a day. This constitutes a drop of around 25%, according to financial reports filed early in September by federal agencies. It is natural for some momentum to die down once the initial phase is in the past and the program begins to shift gears.
With focus now on more individual need, the stimulus package is being used to fund grants and building projects. The number of grants and projects range in the tens of thousands. This helps spread the money on a more personal level and does not confine it to simple mass aid. On the flip side, these programs take time to build and properly monitor. This is a slower process and it creates the illusion of less progress. Once they reach full potential, economic progress vows to change for the better.
This economic aid has done more than simple funding. Besides providing the needy with healthcare and funding for grants, the stimulus package has helped the working man and woman. According to President Obama’s Council of Economic Advisers, the stimulus aid has either saved or created over 1 million jobs. This number surpasses their initial target that they set for the program in June.
Speed is the government’s new goal. Many are worried that the aid is not being given out at a quick enough pace to effectively encourage the country’s economic change. President Obama has asked his Cabinet to accelerate the $500 billion dollar package. Once the economy is on a stable path to full recovery, the speed of handing out the money will be less rushed.
