Shenandoah Valley News

Republican Study Committee’s (RSC) Budget and Spending Task Force Chairman Ben Cline and RSC Chairman Kevin Hern have written a letter to U.S. Treasury Secretary Janet Yellen, urging the Treasury Department to revoke an Interim Final Rule (IFR) that permits state and local governments to hoard unspent COVID-19 funds from the 2021 American Rescue Plan (ARP). The rule allows these governments to extend the deadline for spending the funds by submitting a detailed memo on how they plan to use the money by April 30, 2024. Cline and Hern argue that this rule violates congressional statutes and encourages wasteful government spending.

Brittany Madni, Executive Vice President of the Economic Policy Innovation Center (EPIC), supports Cline and Hern's efforts, stating that the Coronavirus State and Local Fiscal Recovery Fund (SLFRF) has been treated like a "slush fund" and that the new rule allows states to stash money for unspecified future uses. Madni commends the congressmen for championing common sense and shedding light on these abuses.

The letter, co-signed by 34 congressional colleagues, highlights the misuse of SLFRF funds on projects unrelated to the pandemic. Examples include millions of dollars being spent on golf courses, swimming pools, sports stadiums, tennis and pickleball courts, rodeos, and even a circus and flea market site. Cline and Hern argue that these inappropriate uses of funds, along with the extension of the spending deadline, raise concerns about the proper deployment of the money.

With approximately $152 billion in unobligated SLFRF dollars, Cline and Hern emphasize the need for careful management of the program by the Treasury Department. They assert that the Interim Final Rule unlawfully extends the deadline for obligating funds, contravening the plain language of the statute. The congressmen call for the withdrawal of the rule.

Cline and Hern also raise concerns about the Treasury Department potentially violating the Anti-Deficiency Act (ADA) by changing the definition of "obligation" and adding a new definition for "return of funds" to the SLFRF program. They argue that these discretionary policy choices by the Treasury Department could put it in violation of ADA requirements and call for an explanation or withdrawal of the regulations.

In conclusion, Cline and Hern stress the need for increased oversight of the Executive Branch's use of emergency COVID-19 funding. They believe that the SLFRF program requires additional oversight and criticize President Biden and the Treasury Department for allegedly mismanaging the program and seeking to expand it for political purposes.

The full text of the letter can be found on the RSC website.

To learn more, click on this link: https://cline.house.gov/news/documentsingle.aspx?DocumentID=1338