Economic Recovery Proposal, State and Local Relief Key Component
Authors Jason Furman, Timothy Geithner, Glenn Hubbard, and Melissa Kearney published policy recommendations in the Aspen Institute’s report, Promoting Economic Recovery After COVID-19.
Their key recommendations were related to: 1) income support for the unemployed, 2) incentives to reward and facilitate work, 3) offer additional lending support for small and mid-size businesses and 4) provide direct federal support to state and local governments.
Ideas for specific federal support for state and local governments centered on: 1) block grants for states and localities that could not be used for tax cuts or pension increases, 2) expand federal matching for Medicaid, 3) financial support for K-12 education and 4) aid for public universities, four-year colleges and community colleges.
The total cost for federal support for state and local governments ranges from $735 billion to $1.3 trillion depending upon the recovery scenario.