Are the Wrong States Getting Stimulus Cash?

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More than $200 billion in stimulus funds have been awarded so far, but many are questioning whether it went to the right place.

USA Today recently crunched some numbers and found that several of the states that have received the least stimulus money per person are ones with the highest unemployment rates and may have a greater need for government funds.

The white paper highlights states like Nevada and Florida, which have the worst and fifth worst unemployment rates respectively, yet rank in the bottom five in terms of stimulus funds received per person. Meanwhile, the state that received the most stimulus money, Alaska, touts an above-average unemployment rate of 7.9%.

According to USA Today, this discrepancy pertains to “longtime federal spending formulas” that focus more on factors like population density and income and less on employment rates.

That said, it’s important to note many of these states are receiving additional government aid in other ways apart from the stimulus. Nevada, Florida and three other struggling states were handed $1.5 billion in federal money to help with their housing crises.

Yet it’s hard not to feel dismayed by these numbers, especially when you consider the government’s own and what effect the stimulus money can create in every state. So far, Nevada created nearly 10,000 jobs with stimulus funds and Florida reported more than 40,000 jobs from this money. By comparison Alaska, which received the most funds only reported adding 2,700 jobs. Think of what these ailing states could do if more money was sent their way.

For those of you hoping to get your hands on some of this stimulus money, either for your business or nonprofit, you can still apply for funding on Recovery.gov. If you’re looking for stimulus jobs, check Recovery.gov or USAJobs.gov for current openings.

—For a comprehensive credit report, visit the BankingMyWay.com Credit Center.

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