Treasury Fights for Accountability: Unreported COVID-19 Relief Funds in Local Governments
The US Treasury is endeavoring to reclaim COVID-19 relief funds from 235 local governments that didn't report their expenditures. Originally, $350 billion was distributed to support pandemic recovery, but some governments failed to comply with reporting rules. The Treasury seeks to ensure proper allocation and accountability of these funds.
The US Treasury is actively seeking to reclaim COVID-19 pandemic relief funds from hundreds of local governments that received millions without filing necessary expenditure reports. This initiative is part of an effort to ensure accountability for the $350 billion distributed under the American Rescue Plan in 2021.
A Government Accountability Office (GAO) report highlights that roughly 1,000 smaller jurisdictions failed to submit required documentation by January, with 139 million dollars remaining unaccounted for. Despite recent compliance by 740 governments, which filed reports, 235 governments still have not complied or returned the funds, raising concerns about oversight and transparency.
Efforts to obtain a comprehensive list of non-complying entities have been hindered by the Treasury's lack of responsiveness to information requests. This obstruction limits the department's capacity to ensure funds are used as intended, fueling ongoing debate over government transparency and financial stewardship.
(With inputs from agencies.)
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