Which states are most at risk of losing cash?

Introduction

Defrayed spending, the amount of money spent to help pay back defrayers, surged this week, the latest sign of a rising economic climate. 

State governments in California, New York, Florida, Georgia, Georgia Tech and Texas reported spending an average of $6,700 each on defraying expenses in August, according to data compiled by the non-profit, nonpartisan Institute for Policy Integrity. 

The highest spending was in Georgia, where state officials spent $5,000 to help defray $2.5 million in defray expenses, according the institute. 

Spending in the other four states rose by a combined $1.6 million, according data compiled in August by the Washington, D.C.-based advocacy group, The Hill. 

States are expected to pass their own budget bills in November that would set spending and tax levels and will also require federal agencies to comply with a $1 trillion spending plan. 

“It’s the biggest jump we’ve seen,” said David Wechsler, a senior fellow at the nonpartisan Tax Policy Center.

“It’s an extremely good sign.” 

State spending on deferrals hit an all-time high of $3.3 trillion in 2013, according a report released last month by the Tax Foundation, a Washington, DC-based nonprofit that studies tax policy. 

Federal spending on the Deferred Action for Childhood Arrivals program, or DACA, for immigrants brought to the U.S. as children has remained relatively flat, according an analysis by the left-leaning Economic Policy Institute. 

Since the program was signed into law by President Donald Trump in 2016, more than 7 million young people have been given work permits, and federal spending on them has increased by more than $1 billion. 

Deferrals are funded by the $4.7 trillion annual federal budget, with a portion earmarked for education, infrastructure and border security. 

A bipartisan group of senators has proposed a bill to temporarily end DACA in the months ahead. 

In September, the Federal Reserve said it would begin increasing interest rates on reserves to stem a decline in economic growth. 

However, interest rates are expected in the future to remain low as the economy recovers. 

On Friday, the Fed increased its benchmark interest rate to 1.5 percent.

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