State Economic Recovery Toolkit

The COVID-19 pandemic triggered unprecedented economic shock in 2020, threatening the livelihoods of thousands of families, entrepreneurs, and local businesses. This toolkit includes 11 policy solutions states can implement to overcome the economic fallout of the pandemic, protect businesses, recover jobs, and put families and communities back on the path to hope and prosperity.

Table of Contents: Solutions in This Toolkit

1. Enact Liability Protection
2. Allow Short-Term Compensation
3. Tax Reform: Incentivize Investment in Growth and Recovery
4. Tax Reform: Allow Businesses to Quickly Deduct 2020 Income Losses
5. Allow Universal Recognition of Occupational Licenses
6. Conduct an Occupational Licensing Review
7. Implement the Collateral Consequences in Occupational Licensing Act
8. Create Regulatory Sandboxes
9. Allow Home-Based Businesses and Occupations
10. Adopt the Mobile Food Vendor Freedom Act and Food Freedom Act
11. Empower Independent Contracting

Introduction

The COVID-19 pandemic triggered unprecedented economic shock in 2020, threatening the livelihoods of thousands of families and local businesses. Between February 2020 and April 2020, the national unemployment rate spiked from 3.5 percent to 14.7 percent, marking the sharpest economic contraction in American history. Businesses shed 22 million jobs as consumers retreated and lockdowns restricted economic activity.

Development and distribution of the coronavirus vaccine is bolstering hope that our communities can soon return to economic normalcy. But the speed and success of economic recovery depends on another critical factor: The policy decisions made in the states.

In response to the pandemic, the federal government has played a substantial role in providing America’s economy with emergency relief. However, the power to reignite long-term economic growth lies with the states.

In any economic crisis, public policy solutions either bring relief or more distress and stagnation. State leaders have substantial power to tailor pro-growth policies to their communities’ unique circumstances and shape an environment where all families and businesses can thrive. To drive economic recovery on a local and personal level, states should embrace solutions to recover jobs lost during the pandemic, to drive down unemployment, and to create an environment supportive of entrepreneurs and small businesses.

This toolkit includes 11 policy solutions states can implement to overcome the economic fallout of the pandemic. Through these liability, tax, and regulatory reforms, state leaders can strengthen local economies, regain jobs, and put families and communities back on the path to hope and prosperity.