How Much Federal Aid is Texas Receiving

Texas 2036

4 years ago

A recent study by BGR Group provides Texas a great opportunity to view the magnitude and impact of the recent $2 trillion federal legislation, the Coronavirus Aid, Relief, and Economic Security Act (CARES).

As BGR points out, this legislation is the largest relief legislation ever passed by Congress. Texas’ state government, local governments, large businesses, small businesses and individuals will receive a critical influx of aid to support our state during this health and economic crisis.

Among the many provisions, as has been widely reported, eligible Texas taxpayers with an adjusted gross income up to $75,000 or up to $150,000 for married couples filing join returns will receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child. For filers with income above those amounts, the payment amount is reduced and then phased out for individuals whose income exceeds $99,000 (or $198,000 for joint filers with no children).

Texas’ large businesses and small businesses stand to benefit from the $100 billion set aside to support American business.

BGR also estimates that the state of Texas and local governments will receive $11.245 billion. To use the funds, governments must show that the funds are:

Necessary expenditures incurred due to COVID-19.
Not accounted for in the budget most recently approved as of the date of enactment.
Incurred during March 1 – Dec. 30, 2020.

BGR notes that the National League of Cities has identified Houston, Austin, San Antonio, Fort Worth and Dallas to receive between $126 million to more than $200 million.

This week, Texas State Comptroller Glenn Hegar indicated that the federal relief, proactive spending cuts by state agencies and temporary borrowing from the state’s Rainy Day Fund would help with the Texas’ current cash flow and help bridge the gap until the Texas Legislature meets in January.

BGR’s full report can be found here.