EDITORS/NEWS DIRECTORS
Though the coronavirus pandemic has receded from its peak, states and local governments still are in the midst of spending billions of dollars they received in pandemic relief aid from the federal government.
The American Rescue Plan, signed last year by President Joe Biden, provided $350 billion of discretionary aid to states, territories, tribes, counties and cities.
Officials can spend it in a wide variety of ways, including on public health services, initiatives to counter the negative economic effects of the virus, and general government operations. The latter category is meant to help governments offset reduced revenue growth during the pandemic and provides the greatest spending flexibility.
An Associated Press analysis found states are planning to spend a comparatively small amount of their aid on traditional public health services. Far more is planned for public infrastructure.
States are pouring money into water, sewer and high-speed internet projects, which are specifically allowed under the federal law. But they also are spending billions of dollars on roads and bridges, college campuses and public buildings — typically by taking advantage of the flexibility allowed under revenue loss provisions. Prisons, racetracks and sports stadiums also have received money from some states.
Below find links to the spending plans for each state, plus ideas and resources for local reporting. Read AP's story here.
BACKGOUND
The U.S. Treasury Department is overseeing the distribution of the “Coronavirus State and Local Fiscal Recovery Funds.” Governments have until the end of 2024 to designate funds for projects and until the end of 2026 to spend the money.
The Treasury requires periodic progress reports and asks governments to classify projects in seven general categories, with 83 subcategories.
States, territories, counties and cities with at least 250,000 people were to submit annual reports to the Treasury by July 31 detailing their planned projects. They also were to post their “Recovery Plan Performance Report" on their websites. Though some missed the deadline, all states ultimately submitted reports by early September.
The Associated Press collected these reports from each state and the District of Columbia, which is treated similarly to states under Treasury rules. The AP then analyzed the spending plans according to Treasury categories.
Governments reported more than $22 billion of planned expenditures for the Treasury’s infrastructure category of water, sewer and broadband. But the AP identified a total of about $36 billion for infrastructure projects — nearly one-quarter of all planned expenditures — when including roads, bridges, buildings and public works projects reported in other categories.
By contrast, governments reported less than $12 billion of planned expenditures in the Treasury’s public health category — even though it was broadly construed to also include such things as “community violence interventions,” substance use services and COVID-19 aid to small businesses.
YOUR STATE'S REPORT
— The 2022 annual reports collected by the AP from states and the District of Columbia are available through a Google drive folder.
— The 2021 reports, which were labeled as interim reports, are available through a Treasury Department website. However, comparisons between the 2021 and 2022 reports are difficult, because the Treasury changed some of the category and subcategory classifications for expenditures.
— Additional details about the Treasury Department's reporting categories and requirements are available through its website.
ADDITIONAL RESOURCES
— The Treasury also maintains a website providing a general overview of the “Coronavirus State and Local Fiscal Recovery Funds.” Among other things, this site provides a breakdown of how much each state and local government was allotted under a heading entitled, “Allocation Information.”
— Various organizations also are tracking the use of American Rescue Plan funds, though the data may be dated because the Treasury doesn't typically release data until several months after it's submitted. The National Conference of State Legislatures tracks funds provided to states. A collaborative effort by Brookings Metro, the National Association of Counties and the National League of Cities tracks funds provided to more than 300 large cities and counties.
QUESTIONS/REPORTING TIPS
— How much of its total allocation of funds has your state already designated for particular projects? Nationwide, states have planned expenditures so far for about three-fourths of the money they received. Is your state ahead or behind the curve? If there's money still on the table, how are officials deciding what to do it with?
— What categories are receiving the greatest amount of spending in your state? The Treasury's category of “Negative Economic Impacts” is the most detailed, with 37 subcategories. The category for “Revenue Replacement” consists primarily of the “Provision of Government Services” but has the greatest flexibility. As a result, these often are a state's largest spending categories. But you can drill down for details by examining the “Project Inventory” in your state's report.
— What do the spending decisions reflect about the priorities of your state legislature and governor? Are officials spending money on programs and services for people, such as housing assistance, job training or mental health services? Are they devoting money to businesses and industries that were especially hard hit by COVID-19 shutdowns and restrictions? Are they putting more money into infrastructure such as public buildings, roads and water projects?
— Are states using their American Rescue Plan funds for one-time purposes, such as bonus pay for employees or deferred maintenance of buildings? Or are they putting money into new initiatives that will require the state to come up with other funding sources if they are to continue after the federal funds are spent? If so, do they have a plan for future funding?
— Are people noticing any benefit yet from these funds? For example, are there people who have received housing assistance or broadband internet service? Are there youth programs that have provided educational or after-school opportunities? The reports sometimes list nonprofit agencies or local entities that have received state grants from the funds. Contact these groups to see what they are doing with the money.
— Has there been any backlash to your state's planned expenditures? In Alabama, for example, a lawsuit is seeking to stop the state from spending money on prison construction. In Kansas, a preservationist group has asked a court to stop the planned demolition of an office building.
— Since the American Rescue Plan passed in March 2021, many states have experienced robust tax collections and now have large budget surpluses. Does your state have a surplus? Do some officials or interest groups in your state contend these federal dollars are not needed, or should not be spent?
