Congress sent more than $150 billion in aid to states and cities two months ago. Yet much of that money has failed to make it to places that need it — leaving some hard hit areas struggling with little support.
Mayor Phil Stang stands on the front porch of his home in Kimmswick, Mo., on April 7. The tiny town along the banks of the Mississippi River, normally bustling with out-of-town visitors this time of year, is virtually empty as the economic ravages of the coronavirus have shuttered shops and restaurants in the community.Mayor Phil Stang stands on the front porch of his home in Kimmswick, Mo., on April 7.
A review by NPR has found in some cases, states and counties – which are strapped in their own right – are holding onto the money. Some states like Vermont, Mississippi and Alabama are locked in heated debates over who gets to spend the money.Other states are struggling with how to spend the money, trying to understand pages of complex rules and restrictions that have slowed government spending.
The result is states like Alaska and Montana with large economic woes but few COVID cases can't shift funds.The streets are quiet except for a few people out for a stroll in Kimmswick, Mo., on April 7.The streets are quiet except for a few people out for a stroll in Kimmswick, Mo., on April 7."We have not received any dollars yet," said Natasha Love Rogers, the chief operating officer for Newark, N.J."The federal dollars from the Cares Act went to our county.
There's no simple remedy that would allow Newark to get more funding. The rules sent out by the Department of Treasury say states and counties"should" pass the money down to their local communities. But the rules don't say"shall," which in government speak means they don't really have to. For those places that do get money, puzzling restrictions await, says Brad Gair, a former federal coordinating officer for FEMA and a principal at Witt O'Brien's, an emergency management firm.Gair has helped the governments and communities manage dozens of disasters including 9/11, Katrina and Hurricane Sandy. But he says he's never seen this kind of complexity. Recently, Gair set up a free webinar to help counties understand the rules. More than 1,000 counties dialed in.
This is"the most complicated Rubix cube of financing we have ever had to solve and we are really good at solving that kind of stuff," says Kip Harkness, deputy city manager for San Jose.
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