Around half of the $350 billion in COVID-19 pandemic recovery funds have not been used. The U.S. Government Accountability Office (GAO) released new spending analysis on Wednesday, April 10. The report revealed that since 2020, state and local governments spent $161.1 billion of the funds from the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).
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Recipients are running out of time to spend the rest of the funds before the money needs to be reallocated. Governments have until the end of 2024 to allocate the money, and then they have another two years, until the end of 2026, to spend the funds.
Several factors delayed the process, from bureaucracy to project planning and implementing timelines for projects. Officials also need to figure out how to spend the awarded money efficiently and effectively.
The COVID relief funds cover the health and economic effects of the COVID-19 pandemic. It can be used for health care expenses, financial support for households and small business, aid for impacted industries, investments to infrastructure and public services and related projects.
According to the GAO, states have spent 53% of awarded funds, while localities have spent 47% of their funds. States received the majority of COVID-19 relief funds, accounting for around $325 billion of the money.
The GAO report found that all but eight states spent at least 25% of their allocated cash, while another eight spent 75% or more of their awarded funds.
