Which Coronavirus Relief Programs Provide the Most Bang for the Buck?
Last Updated December 9, 2020
To date, lawmakers have enacted four separate pieces of legislation in response to the coronavirus (COVID-19) pandemic. Overall, the cost of the legislation is estimated to total approximately $2.4 trillion, funding a range of programs intended to help support Americans and stave off the significant economic damage caused by the necessary response to the virus.
The last such legislation was passed in April — eight months ago — and a number of key coronavirus relief programs are set to expire soon, while funding for other programs has already been exhausted.
This week, lawmakers in the House and Senate, along with representatives from the administration, are considering another round of coronavirus relief legislation, including re-funding a number of earlier programs.
While there is no single ideal way to deal with such a complex policy challenge as the pandemic, we can glean insights about how our responses have been working. Our recent six-part series provides an in-depth examination of the effectiveness of various relief and stimulus programs. Below are two charts that provide topline insights on how some of the major programs impacted the economy.
Which Major Coronavirus Relief Programs Boosted the Economy the Most in 2020?
The chart below compares major coronavirus relief programs, looking at how much they contributed to the economy in 2020, regardless of budgetary effect.
Which Major Coronavirus Relief Programs Provide the Most “Bang for the Buck”?
Perhaps a better way to assess these programs is to examine their effect on GDP relative to their cost. The below chart looks at major COVID-19 relief programs’ “bang for the buck” through 2023.
The estimates provided by the Congressional Budget Office evaluated some of the key relief programs enacted earlier this year. However, there are a number of additional details and insights for lawmakers to consider as they debate additional relief legislation. Moreover, lawmakers could structure those programs differently, and achieve different economic and budgetary impacts. To read more, below are links to our six-part deep dive into the economic response to the pandemic.
- How Did the Fiscal Response to the Coronavirus Help the Economy?
- What Role Did the U.S. Safety Net Play in the Response to the Coronavirus Pandemic?
- How Did Americans Spend Their Stimulus Checks and How Did It Affect the Economy?
- How Effective Has the Coronavirus Relief Fund Been in Helping State and Local Governments?
- How Did the Fiscal Response to Coronavirus Help Small Businesses?
- How Much Has Coronavirus Relief Helped Healthcare Providers?
Image credit: Photo by Spencer Platt/Getty Images
Further Reading
No Tax on Social Security Would Weaken Both Social Security and Medicare
Republicans in Congress are considering several new tax cuts that would reduce federal revenues by trillions of dollars over the next decade.
The President’s “Skinny Budget” Reallocates Priorities for Appropriations
President Trump’s budget proposal would maintain total discretionary spending at the same amount as last year — but would reallocate billions from other programs into the defense and homeland security.
How Much Can the Administration Really Save by Cutting Down on Improper Payments?
Cutting down on improper payments could increase program efficiency, bolster Americans’ confidence in their government, and safeguard taxpayer dollars.