Time is running out for local governments to use billions of dollars of federal pandemic relief funds
From the looks of it, the Phoenix suburb of Gilbert hasn’t done too much with the $24 million it received in federal pandemic aid.
The site where it plans to spend most of the money for a crime victims center remains an empty plot of dirt. And just one-quarter of its funds are obligated for projects, according to the most recent federal data. But town officials say contracts should be in place soon to spend the rest of it.
For Gilbert and thousands of other local governments across the U.S., the clock is ticking to use their share of $350 billion in COVID-19 relief funds approved by Congress and President Joe Biden in 2021. Governments must obligate all their American Rescue Plan funds for specific projects by the end of this year or else return the rest to the U.S. Treasury.
About 80% of all funds had been obligated as of March, according to the most recent data reported to the Treasury by more than 26,500 local, state and territorial governments. That’s right on pace to finish in time.
But some governments appear to have a lot more work to do than others.
About one in five governments reported obligating less than half their funds as of this spring, according to an Associated Press analysis, and about 3,500 had obligated less than 25%. That includes 2,260 governments that reported no projects, leaving it unclear whether they had any plans for the money. Some of them may have already used the money but failed to describe the purpose to the federal government.
The Treasury Department said it’s doing extensive outreach to help communities understand their reporting requirements.
From the beginning, the American Rescue Plan faced criticism from some Republicans and government watchdog groups for allowing unnecessary and excessive spending, including on things hardly connected to the coronavirus pandemic. But some state and local officials say the funding has allowed them to undertake long-sought projects they couldn’t otherwise have afforded.
Gilbert officials decided to devote almost all their American Rescue Plan funds to a single project — a $43 million facility where victims of sexual assault, child abuse and domestic violence can undergo forensic exams and interviews needed for prosecution while also receiving counseling and therapy services. Officials identified a need for the center several years before the pandemic but didn’t have a funding source.
