To aid the nation’s recovery from the coronavirus disease 2019 (COVID-19) pandemic, the U.S. Congress passed four special appropriations laws for the federal government to use in relief efforts. The largest of these was the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which provides approximately $2.09 trillion and is the largest supplemental appropriation in American history.

In this analysis, we explore the four COVID-19 supplemental appropriation laws passed by the U.S. Congress, starting with the amount of funding budgeted for agencies and how that money can provide financial relief. Next, we walk through the process of how the money moves from appropriations to individuals and businesses, and finally, we dive into how agencies are spending the money.

There are many steps in the process to move the $2.59 trillion in supplemental funds through the full budget lifecycle to the American people. In this section, we follow the flow of money by breaking down a few key terms and explaining how agencies spend supplemental funding.

After a special appropriations law passes, it is the role of the Department of the Treasury (Treasury) to review the new legislation and issue funds to agencies’ spending accounts. The appropriations process gives agencies the authority to begin using funding according to the purpose assigned in the law. To spend the money, agencies obligate the funds to different programs through contracts, direct payments, grants, or loans. When agencies make an obligation, they create a binding agreement to use the funds for a particular purpose. An example of an obligation is an agency setting aside adequate funds when it enters into a contract with a vendor to purchase personal protective equipment, such as masks.

Creating an obligation doesn’t mean the money has been paid, only that the agency has promised to pay the funds. In many cases, the recipients of funds may be required to do something before receiving payment, such as delivering equipment or supplies.

The final step in the process is making a payment, which is called an outlay. This is the step where the agencies authorize the Treasury to issue a payment to individuals, businesses, or other organizations.

Ninety-two percent of the $2.59 trillion in COVID-19 funding was appropriated to four agencies: The Treasury, Health and Human Services, Labor, and the Small Business Administration (SBA). Of those funds, roughly half, or $1.27 trillion, were allocated to fund loan and loan guarantee programs. These funds could be used to generate an estimated $3.92 trillion in loans and loan guarantees to businesses and individuals. This includes loans which will be disbursed directly by the government, like the SBA’s Economic Injury Disaster Loan (EIDL) Program. It also includes funds for loan guarantee programs, such as the SBA’s Paycheck Protection Program (PPP), which are disbursed by partner financial institutions.

As of September 1, the federal government had made $1.68 trillion in obligations, of which $1.55 trillion was outlayed. These totals were calculated from agencies’ certified monthly reporting to the Treasury’s Governmentwide Treasury Account Symbol Adjusted Trial Balance System (GTAS).

This analysis will be updated quarterly as new data becomes available. To learn more about how we developed this analysis and download the raw data, visit the Data Sources and Methodologies page.