The Race to Spend Federal Pandemic Aid: What Gilbert and Other Local Governments are Doing

As the deadline looms for local governments to spend their share of $350 billion in COVID-19 relief funds from the American Rescue Plan, some are racing against time to allocate their funds effectively. Gilbert, a Phoenix suburb, received $24 million in federal pandemic aid but has only obligated one-quarter of it. Despite this slow start, town officials are confident that contracts will be in place soon to fund crucial projects.

According to recent data reported to the Treasury, about 80% of all funds have been obligated as of March, putting governments on track to meet the year-end deadline. However, some municipalities are lagging behind, with about one in five reporting less than half their funds obligated and some having no projects identified at all.

One standout example is Gilbert’s decision to allocate almost all its American Rescue Plan funds to a crime victims center. The $43 million facility will provide essential services to victims of interpersonal violence, filling a longstanding need in the community. The federal money will cover over half the cost, with the rest coming from Gilbert’s general funds.

Despite some criticism of unnecessary spending, many state and local officials argue that the funding has allowed them to undertake vital projects they could not have afforded otherwise. In Gilbert, the aim is to create a safe and healing environment for victims of abuse and violence.

As the deadline approaches, municipalities like Dearborn Heights in Michigan are working to expedite the allocation of funds for various infrastructure projects. Challenges in project selection and bidding processes have delayed progress but efforts are underway to meet the federal requirements.

Missouri is reallocating some of its funds to new projects, showcasing the flexibility and adaptability needed to fully utilize the federal aid. Lawmakers are making backup plans to ensure all funds are spent appropriately, with a focus on investing in communities and future workforce development.

The urgency to spend the funds is evident across the country, with Connecticut reallocation funds to new purposes and New Orleans swiftly obligating the majority of its allotment. The push to utilize every dollar of federal aid reflects the diverse needs and challenges faced by local governments in the aftermath of the pandemic.

As the race to spend federal pandemic aid continues, it remains crucial for local governments to prioritize projects that will have a lasting impact on their communities. The clock is ticking, but with strategic planning and efficient allocation, municipalities can make a meaningful difference in the lives of their residents.

At the end of the day, the goal is to ensure that every dollar of federal aid serves its intended purpose and contributes to the recovery and resilience of local communities across the country.