As states plan how they will spend the remaining $25 billion in federal COVID-19 relief funds, some also face complaints and renewed scrutiny over how they allocated what they already earned from the American Rescue Plan Act.
Of the legal $198 billion through Congress in 2021, $173 billion has already been allocated across the states, the District of Columbia and Puerto Rico. Much of the cash has been earmarked, as planned, to deal with the COVID-19 public fitness emergency, adding Social systems reap benefits Low-income communities, subsidies to help small businesses remain open and pay essential workers. But civil rights teams and think tanks focused on economic and fiscal policy have pointed out that the cash has been used to build prisons, offset tax cuts and fund projects that go against public fitness, such as Arizona’s $163 million program to provide grants to schools that did not have mask-wearing mandates.
The American Civil Liberties Union, in a letter earlier this month, asked the Treasury Department to investigate the misuse of the ARPA budget. The Institute for Taxation and Economic Policy criticized the tax cuts that it said squander revenue accumulated in part through the federal relief budget. The GOP-controlled House Oversight and Accountability Committee on Wednesday, the first of what its chairman, Rep. James Comer (R-KY), said will be hearings to examine how the federal budget was spent for pandemic relief.
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