Tag: American Rescue Plan

Demand for Gov. Ducey’s School Vouchers to Leave Arizona Schools That Mandate Masks or Require Unvaccinated Students to Quarantine Exceeds Funds

Rachel Alexander
Doug Ducey

Just three weeks after Gov. Doug Ducey announced that school districts issuing mask mandates or requiring vaccinated students to quarantine would be penalized by diverting money to students to use as school vouchers to attend elsewhere, demand has exceeded the $20 million he allotted by twice the amount. Ducey announced on August 17 that money the state received from the federal government through the pandemic-generated American Rescue Plan to boost per-pupil spending would not go to any of those schools.

Ducey made the announcement immediately following a demand on August 11 from Republican state legislators to take action regarding those school districts. They suggested that Ducey could withhold federal funds and offer vouchers, which he did, but he did not go so far as following their recommendation of suing the school districts.

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Governor Walz Announces Allocation of $103 Million of Federal Money

The Center Square

Gov. Tim Walz announced the allocation of $103 million in federal American Rescue Plan funds on Friday to support Minnesota students, drive workforce development, and shelter vulnerable Minnesotans before winter.

“President Biden’s American Rescue Plan delivers direct relief to Americans by providing resources to beat this pandemic and build a stronger economy for generations to come. That’s exactly what we’re prioritizing here in Minnesota,” Walz said in a statement. “With this funding, we are helping students recover from the challenges of the COVID-19 pandemic, driving workforce development in critical, good-paying fields, and providing safe shelter to the Minnesotans who need it most before our harsh winter months.”

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Tenants Nationwide Behind on Rent Despite Billions of Unspent Federal Aid

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Low-income tenants across the country are behind on rent payments because of the pandemic, even as billions of dollars appropriated by Congress to assist renters remain untouched.

About $5.2 billion of the $46.6 billion — roughly 11% — set aside for the Emergency Rental Assistance (ERA) program has been distributed to low-income tenants, according to the most recent data released by the Department of the Treasury on Wednesday. House Financial Services Committee Ranking Member Patrick McHenry characterized the Biden administration’s handling of the ERA program as “gross mismanagement.”

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Jobless Claims Climb with Pandemic Unemployment Benefits Set to Expire

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Photo “Unemployment Insurance Claims Office” by Bytemarks. CC BY 2.0.

The number of Americans filing new unemployment claims increased to 353,000 last week as the economy continues its recovery from the coronavirus pandemic.

The Bureau of Labor Statistics figure released Thursday presents a slight increase in the number of new jobless claims compared to the week ending Aug. 14, when 349,000 new jobless claims were reported. The Aug. 7 to Aug. 14 figure was revised from the 348,000 jobless claims initially reported last week.

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Biden Keeps Making the Same Dubious Jobs Claim

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President Joe Biden repeatedly mischaracterized the job growth that has occurred since he took office, saying it is a product of his administration’s economic agenda, multiple media fact checkers have reported.

While the Biden administration has overseen the economic recovery during a period of large gains in the labor market, the White House hasn’t acknowledged that states reopening and ending pandemic-related business restrictions is likely the main catalyst for such growth. The president has also credited without evidence the $1.9 trillion American Rescue Plan, which he signed into law in March, for driving job growth.

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Despite Criticism, Florida Governor DeSantis Awards Bonus Checks

Casey Owens

Governor DeSantis held three ceremonies in the state of Florida Tuesday, awarding first responders and educators with $1,000 bonuses from the for their hard work and dedication through the pandemic.

In addition to first responders’ work through the pandemic, DeSantis’ first ceremony was held in Surfside for search-and-rescue task force members who helped in the aftermath of the Champlain Tower collapse. The last two ceremonies were in Jacksonville and Pensacola respectively.

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Atlanta, Dallas, Tampa, and St. Louis Among the Cities Experiencing the Highest Consumer Price Spikes

The Center Square

Throughout the COVID-19 pandemic, the Federal Reserve Bank and Congress have taken unprecedented steps to stabilize the economy after entire industries and sectors ground to a halt last year amidst the public health crisis. The Fed has kept interest rates near zero, created lending programs to pump trillions of dollars into the economy, and bought securities to support financial markets. Congress passed three major COVID-19 stimulus packages in response to the crisis: the $2.2 trillion CARES Act in March 2020, the $900 billion Coronavirus Response and Relief Supplemental Appropriations Act in December 2020, and the $1.9 trillion American Rescue Plan in March 2021.

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Georgia to Start Accepting Applications for American Rescue Plan Funds Sunday

The Center Square
COVID Testing station

Georgia is still deciding how to divide more than $8.1 billion from American Rescue Plan Act (ARPA), which was signed into law by President Joe Biden in March.

Applications for more than $4.8 billion in funding opens up Sunday. State government entities, local governments, businesses and nonprofits have 30 days to apply for the aid.

The aid will be issued in two installments and cover expenses from March to the end of 2026, but the state has until December 31, 2024, to allocate all of the funds.

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Virginia Businesses Want More Unemployment Insurance Funding to Avoid Tax Hike

The Center Square

In an effort to prevent a future tax hike on Virginia businesses, Gov. Ralph Northam proposed allocating $862 million in federal relief money to the Unemployment Insurance Trust Fund, but a small business association is warning it might not be enough.

The Unemployment Trust Fund, which provides unemployed Virginians with benefits, is funded primarily through payroll taxes from employers. During the COVID-19 pandemic, Virginia’s fund dried up and the state was forced to borrow money from the federal government. Unless the losses can be fully offset, business taxes would automatically increase to maintain the fund because of the state’s funding formula.

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Virginia Gov. Northam Proposes $862 Million of American Rescue Plan Act Funds to Partially Refill Unemployment Trust Fund

Eric Burk

As part of his “Investment Week” announcing American Rescue Plan Act (ARPA) allocation proposals, Governor Ralph Northam announced $862 million for Virginia’s unemployment insurance trust fund, depleted during COVID-19.

“Shoring up the Commonwealth’s unemployment insurance trust fund is a smart investment that will prevent Virginia businesses from paying higher taxes and allow our economy to continue surging,” Northam said in a Tuesday announcement.

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Biden Administration Unveils ‘Historic’ Investment for Communities That Could Create 300,000 Jobs in the ‘Near Term’

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President Joe Biden’s administration announced that it would give $3 billion in coronavirus stimulus funds to approved local communities across the country.

The program dubbed “Investing in America’s Communities” amounts to the largest initiative of its kind in decades, according to the Department of Commerce. Local governments and organizations nationwide impacted by the coronavirus pandemic are able to apply to receive the federal funds.

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Ducey Invests Millions of Federal Dollars to Start Visit Arizona Initiative

The Center Square
Three people on bikes in Arizona during sundown

Gov. Doug Ducey is investing $101.1 million from the federal American Rescue Plan funding to launch the Visit Arizona Initiative to increase tourism spending in Arizona and expedite its economic recovery. 

“Tourism is essential for Arizona’s booming economy and job growth,” Ducey said in a release. 

He said that when tourists stay at Arizona hotels, eat at restaurants, buy Arizona products, and partake in the state’s recreational activities, Arizona’s economy booms.

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Tennessee Department of Education Awarded $830 Million in American Rescue Plan Funds

Corinne Murdock

The U.S. Department of Education (ED) awarded Tennessee $830 million in funds to reopen and secure schools. The Tennessee Department of Education (TDOE) earned these funds based on their American Rescue Plan (ARP) Elementary and Secondary School Emergency Relief Plan (ESSER). All states may submit an ARP ESSER plan. So far, ED reports that 40 states have submitted one.

According to the ED press release, this latest funding brings Tennessee’s total ARP funds to nearly $2.5 billion.

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Virginia Ends Fiscal Year 2021 with $2.6 Billion Revenue Surplus

Eric Burk

Virginia ended Fiscal Year 2021 with a $2.6 billion surplus, the largest in Virginia’s history, with a 14.5 percent revenue growth over FY 2020.

“We have effectively managed Virginia’s finances through the pandemic, and now we are seeing the results—record-breaking revenue gains, a recovery that has outpaced the nation, and recognition as the best place to do business,” Governor Ralph Northam said in a press release.

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Biden Administration Hasn’t Responded to Court Injunctions on Loan Forgiveness Excluding White Farmers

Corinne Murdock
Man in a blue shirt standing in a cornfield.

The White House hasn’t addressed the court-ordered injunctions against President Joe Biden’s loan forgiveness program that excludes white farmers.  The latest ruling came late last week through a Tennessee farmer’s challenge to the program’s alleged racial discrimination. United States District Judge Thomas Anderson agreed with the Tennessee farmer’s take on the program’s discriminatory practices, ruling the program unconstitutional and issuing a nationwide injunction to halt it on Thursday in the case, Holman v. Vilsack et al. Another federal judge in Wisconsin issued a similar ruling last month, and a little over two weeks ago a federal judge in a similar Florida case offered a concurring ruling. 

The Southeastern Legal Foundation (SLF) and Mountain States Legal Foundation (MSLF) brought the case with the latest ruling on behalf of Tennessee farmer Rob Holman. According to the Biden Administration’s loan forgiveness program in the American Rescue Plan Act of 2021, Holman was ineligible for forgiveness on his farm loans solely because he’s white. According to the law, only “socially disadvantaged groups” were eligible for the program granting up to 120 percent of loan forgiveness, re-application for government backed loans, and a cash gift of 20 percent of the loan’s value to cover any income tax liability. Socially disadvantaged groups were defined as those with members who faced racial or ethnic prejudice.

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New Tennessee Jobless Claims Hit Pandemic Low as State Ends Federal Supplemental Benefits Next Week

The Center Square
Help wanted sign

Tennessee had its lowest number of new unemployment claims last week since the impact of COVID-19 began in March 2020.

The state’s Department of Labor and Workforce Development reported 4,736 new claims the week ending June 19. It’s the first time that total was less than 5,500 in a week since the week of March 14, 2020.

The previous low during that stretch was 5,789 for the week of Nov. 28, 2020.

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Advocates Say Millions of Dollars Needed to Help Virginia Tourism Recover

Eric Burk

Virginia’s economy is recovering, but Virginia Tourism Corporation (VTC) President Rita McClenny told legislators this week that a major infusion of $50 million is needed to help the struggling tourism sector.

“The $27 billion tourism engine stalled out in 2020 as a result of the global pandemic. Every component sector was negatively impacted: lodging, food service, attractions, business, conventions,  events, transportation, entertainment and recreation. The entire sector needs financial recovery support,” McClenny told the Senate Finance and Appropriations Committee.

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Metro Atlanta Leaders to Use Federal Money to Address Crime

The Center Square
Keisha Lance Bottoms

Leaders in the metro Atlanta area said they plan to use American Rescue Plan funding to address public safety issues.

Officials in Fulton and DeKalb counties and the city of Atlanta have announced plans to use a portion of the federal aid to increase public safety or address criminal justice backlogs.

According to several reports, Atlanta and adjacent cities have seen a spike in crime over the past year. State lawmakers have launched a study to look at ways to curb the issue. Gov. Brian Kemp directed $5 million last month from his emergency fund to address the crisis.

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Tennessee Proposes Giving Millions More in COVID Relief to Businesses

Cooper Moran

Tennessee is considering giving over $40 million in additional COVID relief funds to businesses, as the state’s economy continues to recover.

The Financial Accountability Stimulus Group proposed utilizing the funds from the federal government, enabled by this year’s COVID-19 relief package. The goal of the funds is to increase the size of payouts businesses can receive for their losses throughout the pandemic.

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Tennessee Receives $53 Million in Federal Funding for COVID-Related Mental Health and Substance Abuse Services

Corinne Murdock

Tennessee announced that it received an additional $53 million in federal funds for COVID-19-related mental health and substance abuse treatments. The Tennessee Department of Mental Health and Substance Abuse Services (TDMHSAS) will rely on that funding for the next four years. $27 million of those funds will go to mental health services, and almost $26 million will go to substance abuse services.

The funds come from President Joe Biden’s American Rescue Plan. Biden allocated $3 billion for mental health and substance abuse services nationwide.

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Virginia Politicians Call for Action to Make Sure Unemployment Benefits Don’t Keep People from Getting Jobs

Eric Burk
bluecollar

Virginia politicians are calling on Governor Ralph Northam to take steps to make sure unemployment benefits aren’t preventing potential employees from returning to work. Senate Republicans want to use American Recovery Plan funds to create “Back-to-Work” bonuses to incentivize current unemployment recipients to re-enter the workforce. Congresswoman Elaine Luria (D-Virginia-02) is calling for better enforcement of unemployment benefit eligibility rules.

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President Biden’s ‘Infrastructure’ Rescue Plan Bars Memphis from Using Any of the $343 Million in Federal Funds to Repair Bridge

Corinne Murdock

President Joe Biden’s American Rescue Plan doesn’t allow for either Shelby County or Memphis to use their $343 million in federal funds to repair the broken Memphis bridge. The Hernando de Soto bridge, or I-40 bridge, has been closed to traffic since May 12 due to a large crack in one of its structural beams. As The Tennessee Star reported, Governor Bill Lee visited the bridge on Tuesday to review repair plans. After his visit, Lee criticized Biden’s plan for being marketed as an infrastructure plan but not assisting in actual infrastructure.

“While Congress ponders the definition of infrastructure, we call upon the federal government to prioritize the safety of actual roads and bridges. Although the American Rescue Plan designated $182M to Shelby Co. & $161M to Memphis, funds are prohibited from being spent on road or bridge infrastructure,” said Lee. “The American Jobs Plan, touted as an infrastructure plan, would spend $2T w/ a mere 5.6 percent dedicated to roads & bridges.”

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Virginia Legislators Lay Out Priorities for ‘American Rescue Plan’ Funds

Eric Burk

The American Rescue Plan will provide $7.2 billion for Virginia: $2.9 billion allocated for municipalities, and $4.3 billion for the state government, according to a Tuesday announcement from Senators Mark Warner and Tim Kaine. On Wednesday, Governor Ralph Northam and Democratic General Assembly leaders released their priorities for the $4.3 billion, including upgrading public health infrastructure, funding the Rebuild Virginia small business recovery plan, adding funds to the Unemployment Trust Fund, modernizing public schools, and deploying broadband across Virginia.

“This is a unique opportunity to invest in Virginia’s long-term future. We intend to be good stewards of these taxpayer dollars, in full compliance with fiduciary guidelines. We reject calls to refuse these federal dollars, and we support the law’s prohibition on cutting state taxes to substitute federal dollars. We embrace this rare opportunity, and we choose to invest,” Northam and the legislators wrote.

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Despite COVID Lockdowns, Georgia Revenue Up $2.5 Billion

Cooper Moran

Instead of a predicted deficit, Georgia’s total revenue increased by $2.5 billion, according to a statement released by Governor Brian Kemp’s office.

Many state elected officials predicted significant budget shortfalls due to a partially-closed economy because of the COVID-19 pandemic and subsequent lockdowns.

“Year-to-date, net tax collections totaled $21.74 billion for an increase of nearly $2.51 billion, or 13.1 percent, compared to the previous fiscal year when net tax revenues totaled $19.23 billion after ten months,” the statement read.

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Judge Grants Virginia Employment Commission Brief Extension to Respond to Class-Action Lawsuit over Slow Unemployment Claims Processing

Eric Burk

Virginia is trailing the rest of the United States in processing certain unemployment claims. That’s led to a class-action lawsuit against the Virginia Employment Commission (VEC), filed in April. VEC Commissioner Ellen Hess asked for an extension until the end of May to respond to the lawsuit, but on Wednesday, a district judge ruled that the VEC could only have a four-day extension from May 7 until May 11.

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13 States Sue Biden Administration, Demand Ability to Cut Taxes

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West Virginia Attorney General Patrick Morrisey

Thirteen states sued President Joe Biden’s administration over an American Rescue Plan provision prohibiting states from cutting taxes after accepting coronavirus relief funds.

The 13-state coalition argued that the provision included in the Democrats’ $1.9 trillion coronavirus relief package preventing states from cutting taxes if they accept relief from the federal government is unconstitutional. The coalition, led by Republican West Virginia Attorney General Patrick Morrisey, filed the federal lawsuit Wednesday evening in the U.S. District Court for the Northern District of Alabama.

“Never before has the federal government attempted such a complete takeover of state finances,” Morrisey said in a Wednesday statement. “We cannot stand for such overreach.”

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Northam, Beyer and Buttigieg Announce $3.7 Billion Transforming Rail in Virginia Initiative

Eric Burk

New U.S. Transportation Secretary Pete Buttigieg and Congressman Don Beyer (D-Virginia-08) joined Governor Ralph Northam at Alexandria’s Amtrak station Tuesday. Northam announced a partnership with Amtrak, CSX and the Virginia Rail Express (VRE).  The partnership includes a $3.7 billion investment into expanding infrastructure, funded by Amtrak, state, and regional partners.

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Biden Touts American Rescue Plan, Affordable Care Act at the Ohio State University

The Center Square
biden-ohio_840x480

As President Joe Biden made his first visit to Ohio since taking office Tuesday, he was criticized for what one policy group called unnecessary spending. 

Biden, in Columbus to tout his administration’s response to the COVID-19 pandemic, along with the recently passed American Rescue Plan, visited the James Cancer Hospital at The Ohio State University late Tuesday afternoon.

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Ohio AG Responds to Criticism of American Rescue Plan Lawsuit

The Center Square

Ohio Attorney General Dave Yost continues to receive support and criticism from groups throughout Ohio a day after announcing a lawsuit challenging requirements in the federal American Rescue Plan.

Policy Matters Ohio, a nonprofit progressive think tank, called Yost’s decision to seek an injunction to stop the state’s obligation to not cut taxes if it accepts more than $5 billion off base.

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General Assembly Will Need Another Session to Allocate American Rescue Plan Funds

Eric Burk

The General Assembly will probably have another special session in 2021, which is necessary to allow the legislature to allocate federal funds granted to the Commonwealth in the $1.9 trillion American Rescue Plan (ARP) passed by Congress and signed by President Biden Thursday.

Virginia Secretary of Finance Aubrey Layne said, “It will require another session, but it probably will be sometime in the future weeks or possibly months because the Governor has made no decision. But part of that is because we have not received a specific certification on the actual monies yet from the Feds.”

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