Politics and the Distribution of Federal Funds: Evidence from Federal Legislation in Response to COVID-19 [open pdf - 1MB]
From the Abstract: "COVID-19 [coronavirus disease 2019] relief legislation offers a unique setting to study how political representation shapes the distribution of federal assistance to state and local governments. We provide evidence of a substantial small-state bias: an additional Senator or Representative per million residents predicts an additional $670 dollars in aid per capita across the four relief packages. Alignment with the Democratic party predicts increases in states' allocations through legislation designed after the January 2021 political transition. This benefit of partisan alignment operates through the American Rescue Plan Act's sheer size, as well as the formulas through which it distributed transportation and general relief funds."
AEI Economics Working Paper 2021-08; American Enterprise Institute Economics Working Paper 2021-08
2021 Jeffrey Clemens and Stan Veuger. Posted here with permission. Documents are for personal use only and not for commercial profit.
American Enterprise Institute: https://www.aei.org/