Local governments across the U.S. have turned down a potential total of $73 million in federal pandemic relief funds.
Mark Delaney, Mayor of Village of the Branch, a village in the Town of Smithtown in Suffolk County, stands outside Village Hall, Thursday, June 2, 2022, in Smithtown, N.Y. From small towns to big cities, every government across the U.S. was offered a slice of $350 billion of federal coronavirus relief funds intended to help shore up their finances, fight the virus and invest in community projects.
“The conversation probably lasted 15 seconds. Without having really any need for it, it wasn’t something we felt like we wanted to get in the middle of,” Mayor Willie Richter said.Other small-town mayors and village administrators provided a variety of reasons for rejecting the federal money. Some thought they had no eligible uses for it.
, the village could have used its entire $183,149 allotment for almost any government services. But by then, the village's share already had been reallocated among other local New York governments.“Because you did the right thing and you responded quickly, you basically lost out on an opportunity,” Delaney said.
States were in charge of passing along funds to so-called “non-entitlement units” of government — generally cities with fewer than 50,000 residents. Once a state received that money, it had 30 days to distribute it. But some states requested as many as eight monthly extensions from the Treasury, pushing their deadlines into 2022.
The chief executive of DeWitt County, located between Houston and San Antonio, said he turned down the federal aid because the county already had enough cash for its budget. He also raised concerns about the federal program.
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