Thu Sep 19 08:26:59 UTC 2024: ## Local Governments Face Deadline to Spend Pandemic Relief Funds
**Gilbert, Arizona -** The clock is ticking for local governments across the U.S. to use their share of $350 billion in COVID-19 relief funds. By the end of the year, they must have obligated all their American Rescue Plan funds for specific projects, or return the unused portion to the Treasury.
While most local governments are on track to meet the deadline, some, like Gilbert, Arizona, are lagging behind. Gilbert received $24 million in pandemic aid but has only obligated 25% of the funds. The town plans to use the majority of the money to build a victims’ advocacy center, but the project is still in its early stages.
Other governments have also struggled to utilize the funds. An Associated Press analysis found that about one in five governments had obligated less than half their funds, and roughly 3,500 had obligated less than 25%.
Some officials argue that the funding has been essential for undertaking long-sought projects, while others criticize the program as wasteful and unnecessary.
As the deadline approaches, some states and localities are scrambling to ensure they use all the money. Missouri, for instance, has reallocated funds from stalled projects to new initiatives. Connecticut has also established a plan to reallocate any funds that remain unobligated.
Despite the challenges, many local governments are making progress in using the funds. New Orleans, for example, has obligated 86% of its $387.5 million allocation.
The American Rescue Plan funds have provided a lifeline to many local governments, but they are facing a race against time to spend them. As the deadline nears, the debate continues about whether the funds have been wisely allocated and whether the program has lived up to its promises.
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