States Spend Covid Aid on Infrastructure Projects

Associated Press: “The aid was promoted by Democrats in Congress as an unprecedented infusion for cash-strapped governments to respond to the virus, rebuild their economies and shore up their finances. But it came as state tax revenues already were rebounding, leaving many states with record surpluses and enviable decisions about what to do with all the money.”

“Relatively little of the federal aid has gone toward traditional public health purposes… Significantly more has gone toward public infrastructure. States are pouring money into water, sewer and high-speed internet projects, as specifically envisioned by the law. But the AP found that they’re also spending billions of dollars on roads, bridges, sidewalks, airports, rail lines and buildings at college campuses and government agencies — justifying all of it under the federal government’s generous flexibility.”