Many American cities are still deciding how to spend federal pandemic relief money--Brookings study

After pushing for billions in COVID relief, mayors take time spending federal dollars "This funding helps us to be prepared for the structural changes" spurred by the pandemic, Nan Whaley, the mayor of Dayton, Ohio, said. CBSPolitics

Washington — In the face of waning revenues due to the COVID-19 pandemic, the nation's mayors emerged as key fighters in congressional Democrats' corner as they pushed for billions of dollars in federal funds to be included in a $1.9 trillion coronavirus relief package signed into law in March.

The mayors, from both sides of the aisle, were ultimately successful in their efforts, as President Biden's sprawling coronavirus legislation, called the American Rescue Plan Act, contained $350 billion for state and local governments, many of which were left out of an earlier round of aid.

Now, seven months after Mr. Biden signed the $1.9 trillion package into law and five months after getting their first tranche of aid, mayors in some cities are taking their time to spend the money they received, instead waiting to examine the long-term impacts of the pandemic on their cities. ...

Recipients with populations of at least 250,000 had to tell the Treasury Department in September how they spent the money they received so far, but an analysis by the Brookings Institute found that many cities haven't yet decided what they'll use the money for.

The Brookings examination of plans from 20 large cities found that of the combined $7.4 billion they'll receive, only 18% had been committed. Of the money that has been reserved, most is being used by cities to make up for revenue shortfalls, while other funds are being directed to help low-income communities or those disproportionately impacted by the pandemic.

"The overall signal from many big cities seems to be that they do not feel under immediate pressure to commit and spend the first tranche of flexible federal dollars," Brookings researchers said. ...