FOX17: Tennessee Needs to Use Up Covid Funds 24_tn_covid_funds

August 19, 2024 02:23 PM

Fox17_Nashville

1. How much did Tennessee get and how much is left?
A: American Rescue Plan Act, otherwise known as the Covid-19 stimulus package, was passed into law in March 2021. Tennessee received $3.7 billion in aid beginning three years ago.
April 2023 was the end of the Covid-19 national emergency — but the state has only spent 10% of the funds — $390 million. It spent the money on agricultural research and education, a veterinary lab, the arts, childrens services, health facility investments, unemployment insurance, tourism investments, IT investments like cybersecurity and cloud upgrades.
$44 million on broadband internet
$36 million on water and wastewater infrastructure
It has designated $2.2 billion for specific uses — otherwise known as “obligated” — and still has another $1 billion that it must obligate by the end of this year.
States have until 2026 to spend the money but they must have it obligated by the end of this year – can’t just have it budgeted to spend, they must have a contract or subaward or some other documented spending.
Davidson County got over $358 million – almost half of that is for water and wastewater infrastructure enhancements.
 
2. How does this compare to how other states are spending their pandemic aid money?
A: All the states are in the same boat that they must have the money obligated by the end of the year and spent by the end of 2026.
And all states have the benefit of an expanded list of what they’re allowed to spend it on – as you heard from the long list, there’s lots of thing that have nothing to do with the pandemic that they can spend it on.
Broadband, water and sewer infrastructure were added a few years ago.
Across the nation, 50% of the aid has been spent as of last January  — Tennessee has only spent 10%.
Tennessee is in the bottom five among states with the lowest spending. If they don’t obligate the money by the end of the year, they have to return it to the U.S. Treasury.
So the state has five months to get another $1 billion in spending obligated, then it must spend that money, along with the other $2.2 billion it already obligated, over the course of the next two years — or give it back.
The people decided how to spend the money are members of a state Financial Stimulus Accountability Group — the governor, lieutenant governor, House speaker, senators, other representatives, and three other finance officials.
 
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