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According to Pew Charitable Trusts, of the $5.2 trillion that
the U.S. government has committed in taxpayer funds to respond
to the pandemic since early 2020, about one-sixth went to state
governments to use at their discretion. Illinois’ share is
estimated to be around $14 billion.
“It is very clear when we looked at our trend charts just how
much bigger total aid to states was in the aftermath of the
pandemic compared to the aftermath of the Great Recession,” said
Rebecca Thiess, manager of the Pew Fiscal Federalism Initiative.
Legislation in response to the pandemic provided aid to states
in several ways, including funding for new programs as well as
existing ones. Flexible sums of money in the Coronavirus Relief
Fund and the State and Local Fiscal Recovery Fund, totaling $307
billion for states, were the largest category of funding going
to states.
“Looking specifically at Illinois, which has put a pretty high
percentage of this funding into revenue replacement, which is a
very flexible use of this funding where they can basically say
‘this is what our state’s budget has lost,’” said Thiess.
Before the pandemic, Illinois’ financial health was considered
the worst in the nation, but those federal dollars bought some
time. The federal funds allowed Illinois to pay bills and
upgrade the state’s credit rating. Still, the state has the
worst grade of any. Critics say without structural reform, the
state’s finances will be in even worse shape when the federal
money runs out.
Thiess notes that increased federal aid to states during a time
of crisis is common, but the response to COVID-19 has seen an
infusion of dollars that will have reverberating effects for
years to come, especially as states invest additional federal
dollars from the recently passed Infrastructure Investment and
Jobs Act.
Kevin Bessler reports on statewide issues in
Illinois for the Center Square. He has over 30 years of
experience in radio news reporting throughout the Midwest.
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