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Local governments want less restrictive rules for how to spend their COVID relief funding

$350 billion dollars were set aside in March to be distributed to states, counties and local governments to help offset the burdens caused by COVID-19.

Many states and cities have been slow to start the spending, due to the unclear and restrictive rules on what they can spend it on.

The Treasury did offer some guidelines, like 60 subcategories to choose from including vaccination efforts, housing aid, and improvement for water, sewer, and internet infrastructure.

DiSanto Propane (Billboard)

What is unclear is the category on how local governments may use the money for loss of revenue caused by the pandemic to fix things like bridges and roads.

Some governments have been able to make up for lost revenue by voters increasing taxes for certain things, but government officials feel that the Treasury taking that into account makes it appear as if the economy has recovered. What really happened was the municipality took on the burden of trying to fix it themselves.

Areas have been slow to spend the money, and until they have clearer rules on how they can spend it, are still waiting due to the restrictiveness of the Treasury’s rules.



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