![](https://webarchive.library.unt.edu/web/20121002001958im_/http://www.recovery.gov/About/PublishingImages/How-The-Money-Moves.gif)
The graphic above illustrates the path of Recovery funds from the federal government to the local level.
- Congress appropriates Recovery Act funds to federal agencies.
- Federal agencies make funds available to state and local governments or directly to academia, business, and/or organizations. Federal agencies also provide entitlements and tax credits covered by Recovery Act.
- State and local governments make Recovery funds available for contracts and grants to academia, businesses, and organizations. State agencies also administer Recovery funds for unemployment compensation.
- If academia, businesses, or organizations receive funds directly from a federal agency, they hire others as needed for the project.