As local governments spend billions in pandemic relief, some neglect to report specifics

President Biden signed the American Rescue Plan shortly after taking office in 2021. The city, which was devastated in 2011 by one of deadliest tornadoes in U.S. history, took a deliberate approach with its pandemic aid to develop “really transformational projects,” said Leslie Haase, Joplin’s finance director. The actual amount of spending commitments is probably well over 80% when accounting for lag times and differences in local governments’ reporting approaches, said Gene Sperling, White House American Rescue Plan coordinator. According to the AP’s analysis, more than 6,000 local governments categorized their entire federal allotment as “revenue replacement” — often taking advantage of the Treasury rule allowing up to $10 million of assumed revenue loss without having to prove it. There also are no immediate penalties for not reporting at all — though the Treasury’s guidance says “a record of late reporting” could lead to the “development of a corrective action plan, or other consequences.” Officials in Ascension Parish, La., which received $24.6 million, reported no expenses or projects as of April — though the Parish Council approved a list of projects last year.