Politics and the distribution of federal funds: Evidence from federal legislation in response to COVID-19

A-Tier
Journal: Journal of Public Economics
Year: 2021
Volume: 204
Issue: C

Authors (2)

Clemens, Jeffrey (not in RePEc) Veuger, Stan (American Enterprise Institute)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

COVID-19 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 alignment with a unified federal government operates through the American Rescue Plan Act’s size and through the formulas it used to distribute transportation and general relief funds.

Technical Details

RePEc Handle
repec:eee:pubeco:v:204:y:2021:i:c:s0047272721001900
Journal Field
Public
Author Count
2
Added to Database
2026-01-25