Challenging austerity under the COVID-19 state

Abstract

Abstract The COVID-19 pandemic represented a short-term shift in US social policy. Under the CARES Act and the American Rescue Plan Act (ARPA), the federal government prioritised households by raising the floor for child support and unemployment benefits, and restoring fiscal federalism by providing increased funds to state and local governments. Our 2021 nationwide survey finds local governments with more citizen participation and Black Lives Matter protests plan to prioritise social equity investments, while those with more Trump voters plan to prioritise physical infrastructure with their ARPA funds. COVID-19 led to new policy approaches that expand government investment. While the federal changes for households (expanded unemployment insurance and child tax credits) ended in 2021, the increased aid to state and local governments continues. These have the potential to help reshape citizen expectations and repair federal–state–local relations.