Why Are States Sitting on Hundreds of Billions in Unspent COVID Relief Money?

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Why Are States Sitting on Hundreds of Billions in Unspent COVID Relief Money?
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According to experts tracking federal COVID spending, as much as $800 billion of the roughly $6 trillion that has been approved by Congress in the last two years for the pandemic is currently unspent

With the Omicron variant disrupting schools and putting state and local governments nationwide on its heels once again, some lawmakers are talking about another round of pandemic relief. But before that discussion goes anywhere, Washington has a question to answer: Whatever happened to the trillions of dollars in pandemic relief that Congress already approved?, liberal pundit Ezra Klein noted that the $1.

To critics, the trove of unspent COVID cash is an indictment of how lawmakers structured relief bills—particularly the Democrat-written American Rescue Plan—and how agencies implemented the provisions. While watchdogs and policy wonks are scrutinizing the unspent COVID funds, lawmakers on Capitol Hill are talking about putting together yet another pandemic relief package to respond to the Omicron variant.

The American Rescue Plan, spearheaded by President Joe Biden and supported only by congressional Democrats, was structured with this idea in mind. The dollars authorized by the legislation can be spent through 2026. The situation with K-12 schools is especially illustrative of the complex dynamics at play with COVID relief. The Omicron outbreak has punished the education system; teachers have protested unsafe conditions—some districts lack mask supply and other basic necessities—and school districts in many states are still waiting on resources to expand their testing capacity.

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