Staff Reports
State and local governments are still busy putting that generous $350 billion COVID-19 stimulus cash to work, but not all is going according to plan. According to a recent report from a Congressional watchdog, only a little over half of the funds have been spent, leaving many asking what these local bureaucrats are really doing with taxpayers’ money.
As of the end of March 2024, states have committed around 84% of their allocated funds, amounting to roughly $163.7 billion, yet have only managed to actually spend about 60%, which breaks down to $117.3 billion. Local governments aren’t faring much better, spending a mere 60% of their share, too. With deadlines looming—December 2024 to commit the cash and 2026 to spend it—there’s a great deal of finger-pointing and head-scratching about how this money is being allocated.
States and local governments continue to spend the $350 billion given out by the federal government during the COVID-19 pandemic.
States, local governments continue to spend pandemic aid as deadline looms https://t.co/FdWYKZkQf8 pic.twitter.com/hVj0FzuDfa
— StridentConservative (@StridentConserv) September 30, 2024
Most of the funds that have been spent are claimed to be used to cover lost revenue and mitigate the economic fallout from the pandemic. Almost half of the money utilized—around 45%—is reported to have gone toward replacing revenue shortfalls, while about 39% is said to address the pandemic’s negative economic impacts. It raises the question of whether these funds are really solving problems or just giving governments a financial safety net to work with.
Curiously, a lot of small governments receiving this federal cash seem to be operating under a shroud of secrecy. Over 4,000 localities, which collectively received $2 billion, have yet to file any reports detailing their spending plans. The lack of transparency here might make one wonder if the local governments are spending this money on legitimate projects or merely using it as an easy piggy bank.
Some bright spots in this funding bonanza do exist, showcasing how a few local governments are creatively utilizing taxpayer dollars. Erie County, Pennsylvania, allocated $2.7 million to prop up a county-owned nursing home, while West Covina, California, decided $1.8 million was best spent on two fire trucks. In a striking example of fiscal priorities, tiny Nightmute, Alaska, was able to secure $11,601 for household assistance, including stove oil for its mere 300 residents. The disparity in allocations shines a light on the uneven management of funds across the board, leaving taxpayers questioning the accountability of their officials.
