Republican governors have slammed the bill's funding formula based on unemployment as 'biased.' But a breakdown shows only small differences.

WASHINGTON — California, Texas and New York would receive 29% of the $350 billion in direct aid that President Joe Biden has proposed for states and cities in his COVID-19 relief bill, according to a USA TODAY analysis of the projected allocations.

That's slightly more than the three states' share of the U.S. population – 27%

The minor discrepancy is the result of a formula used in Biden’s American Rescue Plan that largely relies on the number of unemployed citizens in each state at the end of 2020, not overall population, to determine the funding amount for each state.

Biden’s legislation, which carries a $1.9 trillion overall price tag, was passed by the Senate Saturday after clearing the House previously by a mostly party-line 219-212 vote. The House will again vote on the Senate's amended version of the bill before it can head to Biden's desk.

The package includes $350 billion in aid designed to replenish tax revenue collections that decreased during the pandemic so states and local governments can pay employees and take care of core services.

Republican governors have blasted the plan's funding formula, arguing it “punishes” states that kept businesses open amid the coronavirus pandemic and is "biased" toward Democrat-led states that enforced shutdowns. Advocates of the legislation say the arrangement allows for distribution to more closely address actual needs.

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Yet the most populous states would still generally receive the most money. The smallest states would receive the least. Although some states would receive more money – others less – when using unemployment as the criteria, the differences tend to be modest percentages.

California, the most populous state, would receive the most money, $42.3 billion – including $26.2 billion for its state government and $14.6 billion across local governments. The second most populous state, Texas, would take in the second most ($27.3 billion) in combined dollars.

But the third largest recipient would be New York, which would receive $23.5 billion, even though Florida is the third largest state by population, according to U.S. Census Bureau 2020 estimates. Florida would receive $17.3 billion, fourth most among states.

The reason for the shuffling: New York, one of the first states to enforce a strict lockdown order after facing the brunt of the pandemic last spring, had an 8.2% unemployment rate in December, nearly 2 points higher than Florida’s unemployment rate of 6.1%.

House Republicans have highlighted how GOP-led Florida, for example, would receive $1.2 billion less with unemployment as the criteria instead of population. But it marks only a roughly 7% net loss for the state.

Georgia, another state led by a Republican governor, would collect $1.3 billion less under the formula, a roughly 14% net loss, but would still receive $8.2 billion. Virginia, a Democratic-led state, would receive $6.9 billion, also roughly 14% less than if population dictated the allocation.

Conversely, California would receive about 15% more funds using unemployment the criteria, New York about 10% more, New Jersey 13% more and Texas 5% more.