How will agencies spend stimulus money? Let me count the ways.
According to Rep. Steny Hoyer, D-Md., agencies have five different waysÂ they can disburse their stimulus funds and meet tight spending deadlines in place under the bill:
- â€œBy formula,â€ meaning agencies will use existing statutory requirements for programs like highway infrastructure investments or Medicaid to determine how much each state or municipality is entitled to.
- â€œBy competition,â€ meaning states, localities or contractors will submit proposals for grants and contracts.
- â€œBy demandâ€ to programs with eligibility requirements, such as unemployment insurance, education grants, small business loans and food stamps.
- â€œBy one-time automatic disbursementâ€ such as one-time, $250 payments to social security recipients and veterans.
- â€œBy agency plan,â€ meaning funds will be allocated through existing operating and spending plans like those used to disburse funds for environmental cleanup, National Parks construction and Defense infrastructure programs.
No matter how agencies spend the money, all of it will have to be accounted for on the pending Recovery.gov site.