Report: Smaller states with fewer cases received a larger share of federal funds to fight Covid-19 | Tuesday morning coffee

Good morning Tuesday, dear seekers.

A recent report highlighted inconsistencies in federal aid to states battling the Covid-19 pandemic, with states with smaller populations and lower caseloads receiving more aid on a per capita basis than states with larger populations and higher caseloads.

In mid-April, Pennsylvania had the eighth highest in the nation COVID 19 infection rate per capita and the sixth highest number of cases.

However, due to vagaries in the federal funding formula, the Commonwealth lagged behind the rest of the country in federal aid to fight the disease, according to a up-to-date analysis by financial literacy website Wall 24/7.

In total, Pennsylvania received $4.96 billion of the $2 trillion in federal aid CARES Act aid package, which is the fifth highest result in the entire country. As of mid-April, Pennsylvania had received $178,984 for each confirmed case of Covid-19 in CARES Act money. That’s the seventh-lowest federal share CARES Act As the analysis shows, funding is allocated to each case.

At that time, Pennsylvania had 27,735 confirmed cases and 707 deaths.

According to the analysis, $150 billion CARES Act funds are specifically earmarked for state, local and tribal governments and territories.

The analysis found that funds were allocated according to a population-based formula that provided about $450 for each state resident, with each state receiving at least $1.25 billion in relief. But under this model, states with fewer than 4 million residents (Pennsylvania has 12.8 million residents) “are eligible for significantly higher per capita funding amounts,” the analysis found.

The analysis showed that Wyoming, which had 50 confirmed cases of Covid-19 per 100,000 residents at the time of the analysis, would receive more than 120 times more funding than New York, which was the epicenter of the epidemic at the time.

Here’s what the numbers look like in Pennsylvania:

Federal funding: $178,984 per confirmed case of Covid-19 (7th lowest)
Total federal funding: $4.96 billion (fifth largest)
Impact of COVID-19: 27,735 cases (6th highest), 707 deaths
Covid-19 infection rate: 216.6 cases per 100,000 inhabitants (8th highest)
Total population: 12.80 million (5th largest)

The Pennsylvania Capitol Building. (Capital-Star photo by Sarah Anne Hughes)

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WASHINGTON – APRIL 24: U.S. President Donald Trump attends the signing ceremony of HR266, the Paycheck Protection Program and Health Care Improvement Act, with members of his administration and Republican lawmakers in the Oval Office of the White House in Washington, D.C., April 24, 2020. The bill provides an additional 321 billions of dollars in forgivable Paycheck Protection Program loans to cover payroll and other costs for compact businesses. Hospitals and other healthcare providers will receive $75 billion, and another $25 billion will be allocated to COVID-19 testing. (Photo: Anna Moneymaker/The New York Times/POOL/Getty Images)

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