The Center for Employment Security Education and Research, a component of the National Association of State Workforce Agencies with the assistance of Booz Allen Hamilton and Decern Consulting, conducted research of how states are using the $8 billion special Reed Act Distribution of 2002.  The study was conducted from the fall of 2002 through winter of 2004.  The purpose of the study was to provide an overview of past Reed Act distributions and identify how states chose to approach the current Reed Act distribution.  Since the $8 billion Reed Act distribution was enacted in an economic stimulus package, policy makers expected it to stimulate the economy through cuts in state unemployment taxes or increases in state spending on benefits, Unemployment Insurance (UI) administration, and employment services.  This study found that the $8 billion Reed Act distribution stimulated the economy primarily through about $4 billion in lower unemployment taxes in 2003 and 2004, but also led to some stimulating increases in spending on unemployment benefits, UI administration and employment services, which could continue for some years.