Some states plan big spending with Biden's aid, others wait

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States are getting a windfall from the latest federal COVID-19 relief bill. They plan to spend it on everything from broadband to climate change initiatives to small business aid. By DavidALieb.

FILE - In this Monday, Feb 8, 2021 file photo, Gov. Brian Kemp speaks during a news conference about expanding rural internet access in the state, at the Georgia Capitol in Atlanta. The federal American Rescue Plan, comes on top of $150 billion the federal government sent directly to states and local governments in 2020. This year's law cites infrastructure for water, sewer and broadband internet as allowable uses.

Scott wants to put the money toward economic development, climate change initiatives, water and sewer infrastructure, housing and high-speed internet. Democratic Senate President Pro Tem Becca Balint also wants some to go toward workforce training. “If we don’t know what the guidelines are, it makes it hard to spend the money, because we don’t want to spend it in the wrong way and have it clawed back,” said Iowa Gov. Kim Reynolds, a Republican.The federal law, known as the American Rescue Plan, comes on top of $150 billion the federal government sent directly to states and local governments last year.

Federal law allows states to address the pandemic’s economic effects by providing aid to households, small businesses, nonprofits and industries such as tourism, travel and hospitality. But that doesn’t necessarily prevent money from going to other purposes.

 

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JoZPina DavidALieb Then why are they raising taxes

DavidALieb Maybe they should pay down debt and shore up their underfunded pensions?

DavidALieb What are states that refuse Medicaid expansion doing with the money?

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