The money has gone to state governments in fiscal trouble because of declining revenues and (in some cases) profligate spending. This insulates public employees union members from the painful effects of recession that are being felt by almost everyone else, with the added political benefit of channeling money to unions, which in turn channel some of it to Democratic politicians.
In other words, the Stimulus bails out the public employee unions, who in turn donate campaign cash to the Democrat Party. In effect, the Stimulus is a money laundering operation to borrow money, launder it through the unions (and ACORN) and put it in the coffers of the Democrat Party.
This goes beyond any graft scheme the Democrats have ever dreamed up before. It’s one thing to accept money from crooked lawyers, crooked unions, crooked businessmen, and straight-up gangsters. But to “borrow” money from China and launder it through the lawyers, unions, and mafia back into their own bank accounts is a level of corruption only the U.S. Congress could aspire to.