See how far American Rescue Plan aid goes in your state

How ARPA aid compares with the size of states' budgets (Pew Charitable Trusts map; click the image to enlarge it.)

States are starting to receive some of the funds from the $193.5 billion in state aid in the American Rescue Plan Act. But the money isn't split equally, nor will it affect states equally: States with higher unemployment rates are getting more aid, and the aid makes up a larger share of some states' budgets, Barb Rosewicz, Mike Maciag, and Melissa Maynard report for the Pew Charitable Trusts.

"For states such as South Dakota and Wyoming, the federal aid represents a huge boost for their budgets—about one-fifth of what they spent in fiscal year 2020," Pew reports. "In states where the aid equates to a low of about 5% of state spending, such as Oregon and Wisconsin, the infusion of federal cash is still significant, enough to offset most pandemic-driven general fund revenue declines so far. Plus, the money positions some states to make investments with large price tags, such as broadband, water system, and sewer upgrades, or to address issues such as depleted unemployment insurance accounts."

When calculated as a share of state budgets, it becomes clear that "ARPA provides critical breathing room that was rare in the slimmed-down budgets that lingered after the Great Recession, which started at the end of 2007," Pew reports. "For states that entered the pandemic-driven downturn with robust reserves or otherwise escaped significant budget squeezes, the aid offers even more: an unexpected one-time investment opportunity."

However, the funding doesn't take revenue losses into account, so the states getting the most funding as a share of state spending aren't necessarily the ones hurting most, Pew notes.