Officials Lack Guidance On COVID Fund Spending

Kansas is moving slowly to spend the latest round of COVID-19 aid, and one town turned down its share because city officials decided it’s not needed.

The Topeka Capital-Journal reports that while most state and local governments across the country saw the influx of money as an opportunity to shore up infrastructure, fight the COVID-19 pandemic, and help local businesses, the 2,300-person town of Lakin turned down the $300,000 it was due to receive.

Larger municipalities are getting tens of millions of dollars, prompting debate about where the money should go.

Smaller governments are increasingly finding themselves hamstrung by a litany of rules and reporting requirements.

Governments of all sizes remain frustrated that the U.S. Treasury Department hasn’t been quicker to provide a better sense of what the funds can be used for.

Officials are hesitant to act, out of fear that they will spend on something later ruled ineligible, forcing them to repay the funds.