Monday, July 20, 2020

As Congress mulls more stimulus spending, local officials struggle with how to spend what they already have

Lawmakers return to Washington this week to negotiate another stimulus package even as billions remain unspent from the last round of spending. Congress doled out $150 billion in state and local aid in March aimed at keeping smaller towns and municipalities afloat. But across the country, from West Virginia to Maine, local officials say the program -- like others created in the CARES Act -- has not worked as intended and that strict federal rules designed to ensure the funds are spent on Covid-related expenses has kept much of the money bottled up in local coffers, even as these places face huge budget shortfalls.Cities and counties across the country have urged Congress to give them more direct payments, discretion and guidance in how they can spend the money they've received. But so far none has come, leading to confusion and fear that they will be penalized if they misspend money...MORE

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