Federal officials estimate that local governments now have spending plans in place for most of the money they received under a prominent pandemic relief law.
Federal officials estimate that governments have spending commitments for more than 80% of the funds, even if that’s hard to tell from their reporting requirements.
Governments must obligate that money for projects by the end of next year and spend it by the close of 2026. But Republicans and fiscal conservatives have questioned whether the spending is necessary, noting that mostfrom an initial tax plunge during the pandemic to post large budget surpluses. Though they can provide more details if they choose, governments categorizing all their federal aid as replacement revenue only have to report it as one project, the Treasury told the AP.The Denver suburb of Lakewood, Colorado, claimed its entire $21.6 million allotment as a revenue replacement, since it had dipped into reserves to pay police during the pandemic. It reported no projects.
The Treasury’s guidance about how to report revenue replacement funds used for government services wasn’t very clear, said Katie Buckley, federal funding assistance program director for the Vermont League of Cities and Towns. But Buckley said she advised local officials to report it all as one project for government services, and then list what that included.
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