States And Localities, Flush With COVID Cash, Are Showering Corporate America With Handouts

State and local governments issued at least eight separate $1 billion subsidy packages to major corporations in 2022, thanks in part to federal COVID-19 spending, according to analysis by the nonprofit think tank Good Jobs First, The Wall Street Journal reported Tuesday.

State governments — which have amassed a record-breaking $136.8 billion in cash reserves thanks in part to COVID-19 stimulus funds — are typically restricted from using federal funds for corporate tax credits, according to the WSJ. However, they are usually able to pay other expenditures using those funds, leaving state money to offer for subsidies.

Companies have been bringing factories for electric vehicles, batteries and computer chips to the U.S. amid rising tensions with China and significant federal tax credits, the WSJ reported. Good Jobs First estimates that each job created will cost taxpayers more than $308,000 in subsidies, as states compete to attract projects.