Many states have yet to spend the federal funding they received more than a month ago to help with soaring costs related to the coronavirus…
Many states have yet to spend the federal funding they received more than a month ago to help with soaring costs related to the coronavirus crisis, complicating governors’ arguments that they need hundreds of billions more from U. S. taxpayers.
The Associated Press reviewed plans from governors or lawmakers on how they plan to use the money from the coronavirus relief bill and found that at least a dozen states have started distributing the money. But far more have not.
The reasons vary. Some governors want permission to use the federal aid to plug budget holes after business closures and stay-at-home orders eroded the tax revenue that pays for government operations. Others are holding back because they fear a resurgence of the virus could mean another wave of expenses. And in other states, governors and lawmakers are wrestling over who controls the spending decisions
“If I knew today that another billion dollars was coming to Rhode Island to help solve our budget deficit, I’d spend the $1.25 billion now,” Democratic Gov. Gina Raimondo said about the state’s portion of the money.
Of other states that have started spending the aid, she said: “They’re taking a gamble, and I’m just not ready to do that yet.”
Congress approved $150 billion for state and local governments in late March as part of a $2.2 trillion response to the virus outbreak, and the money was distributed within a month.
In May, the House approved an additional $3 trillion aid package, with nearly a third of that dedicated to state and local governments. Republicans say it’s too much and want to move slowly in the Senate, preferring to see how states spend the first batch of money.
“We need to slow down a little bit here, see what works best in the CARES Act, see what mistakes were made, weigh the consequences of having debt this size in terms of the future of our country and then cautiously make a decision about whether there should be another bill,” Senate Majority Leader Mitch McConnell said this past week at a news conference in his home state of Kentucky.
