Stimulus Aid Trickles Out, but States Seek Quicker Relief

Nearly three months after President Obama approved a $787 billion economic stimulus package, intended to create or save jobs, the federal government has paid out less than 6 percent of the money, largely in the form of social service payments to states. The stimulus bill has directly injected around $45.6 billion into the economy, mostly to help states cover the costs of Medicaid and unemployment benefits, one-time $250 checks that were mailed to Social Security recipients last week, and income tax cuts that began to take effect this spring. Although states around the country are beginning roadwork projects, the Department of Transportation had spent only about $11 million on highway projects through the first week of May. The intent of the stimulus program was to pump money into the economy quickly, and many members of Congress said at the time of its passage that speed was of the essence. But the huge program has been a challenge to administer for both a new administration and for states and local governments grappling with their own fiscal problems. The Transportation Department has committed to pay for more than $10.5 billion worth of projects across the country, which an official there likened to signing the paperwork for a new car before the check has cleared. Those commitments have spurred at least 20 states to award contracts and begin paying road crews; some contractors are staffing up, or postponing layoffs, in the hopes of winning some of that work. And the federal I.O.U.'s — the government has made $88 billion worth of commitments so far — have saved jobs in many areas.