Economics
Economic Boost From Stimulus Seen as States and Cities’ Best Bet
- Federal package has no direct aid to cities and states
- Municipal governments will feel the recovery unevenly
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The federal stimulus passed by Congress this week doesn’t include any direct cash to states and cities, leaving them to rely on the economic boost the aid package promises to fend off some of the deep spending cuts and budget shortfalls caused by the pandemic.
That means the recovery for municipal governments will likely be felt unevenly, dragging into late 2021 or even longer for those areas hit hardest by fiscal hit from Covid-19, according to a report by the National Association of State Budget Officers.