\n
With the federal government nearly $34 trillion \u2064in \u2062debt, in no small part because of \u200bthe spending\u2062 spree of the last few years, \u2063you would think\u200d Washington would have an interest in exercising \u2063some \u2064spending restraint. Think again.<\/p>\n
A report issued this week highlighted the ways in which federal bureaucrats are still encouraging states to spend “slush\u200b fund” dollars issued more than two years ago. When it\u2063 comes to buckets of money Republicans \u200cin the House should insist on returning to taxpayers, this fund represents a \u2064good \u2014 but by no means the only \u2014 place to start.<\/p>\n<\/blockquote>\n
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Rewriting Spending Parameters<\/strong><\/h2>\n
The report<\/a> by the Economic Policy Innovation Center focuses on a rule issued by \u2064the Biden administration just before Thanksgiving. The rule<\/a> \u2014 issued without prior\u2062 public comment, and without designation as a\u2062 “major rule” subject to congressional notification \u2014 \u200cgave states and local governments until 2026 to spend funds initially appropriated in the 2021 “stimulus” measure.<\/p>\n
The rule allows states and local governments to spend up to\u200b 10 percent of their appropriated funds on \u2062things like \u200d”reporting and compliance requirements,” “audit costs,” and \u2063”record retention \u200band internal control requirements,” including personnel costs<\/a> associated with the same. In\u2063 other words, states and local governments can now use these federal \u200cdollars to fund bureaucrats’ salaries \u2014 because that’s just what the American people need: more\u2062 government bureaucrats<\/em>.<\/p>\n
The report also highlights some of the\u200b ridiculous spending associated with the $350 billion provided to \u2063state and\u200b local government,\u200c some of which was previously cataloged by\u2063 the Associated Press<\/a> and reported \u200din The Federalist<\/a>. The list of pork projects includes $185\u200b million in federal funds spent on golf courses, money for\u2062 a circus, the \u2063use of federal dollars to fund services for asylum seekers \u2014 thereby\u2064 encouraging and exacerbating \u2062the ongoing chaos at the \u200cborder \u2014 \u200cand three states employing “diversity, equity, and inclusion” (DEI) coordinators on federal taxpayers’ dime.<\/p>\n
Isn’t the Pandemic Over?<\/strong><\/h2>\n
The\u200d report notes that, of \u200bthe $350 billion \u200cappropriated for state and local \u200cgovernments in\u2064 March 2021,\u2064 a total of $241\u2064 billion has been budgeted by the relevant governments as of this June, while only $198 billion has been contractually obligated. But amidst the legal and procedural details about the Biden administration’s \u2063pre-Thanksgiving rule, one not-insignificant detail goes unmentioned through much of the paper.<\/p>\n
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Democrats and the Biden administration appropriated the $350 billion in \u2062state and local “slush funds” in March 2021\u2063 to, as the Treasury\u200c put it<\/a>, \u200c”support [the governments’] \u200d response to and recovery from the COVID-19 public health emergency<\/a>.” But the public health emergency for the pandemic ended \u200con \u2062May 11<\/a> and \u2062arguably should have\u2063 ended months, \u2062if not\u200b years, earlier.<\/p>\n
With almost half \u2014 \u2062$152 billion of the\u2062 $350 billion, or 43.4 percent \u2014\u200d not formally \u200dobligated as\u200c of June 30, how exactly can these federal dollars help \u2062”support the response to” a pandemic after that pandemic has ended? And if states and local governments haven’t appropriated \u2062these funds after two and a half \u200cyears, \u200chow much of an “emergency” do\u2063 they really face that they\u200d need these dollars?<\/p>\n
States\u2064 Swimming in Revenue<\/strong><\/h2>\n
To most conservatives, the answers should be obvious. In fact, as the Economic Policy Innovation Center report notes, states had little need for these funds in the first place, as the loss in tax revenue that some feared did not materialize.<\/p>\n
While some thought the government-imposed lockdowns<\/a> at the start\u2062 of\u2063 the pandemic would cause major revenue shortfalls, those scenarios did not pan\u2062 out in most cases. Instead, the Federal Reserve’s massive infusions of cash inflated the prices of stocks (along with much else<\/a>). \u200bWhen individuals sold stocks and other assets during this Fed-induced bubble, they realized significant capital gains, leading many states to \u200dexceed their prior revenue estimates.<\/p>\n
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Claw \u2063the Money Back<\/strong><\/h2>\nTo sum up: States are sitting on as much as $152 billion in unobligated federal funds originally \u2063designed to “respond to” a pandemic that has long\u2062 since abated, while Washington just ran what amounts to a $2 trillion deficit<\/a> in the fiscal year \u200bthat ended in September. Clawing back these unneeded funds \u2063makes so much sense that… the Biden administration just issued the aforementioned rule designed to give states more latitude to\u200c sit on, and then spend, the federal cash.<\/p>\n
Thankfully, Congress\u200c can have a say in the matter. When they finally complete work\u2063 on the\u200c annual spending bills<\/a> for the current fiscal year, \u200cRepublicans \u2062should <\/p>\n
What are the potential consequences of diverting up to 10 percent of funds for purposes \u2064other \u200cthan their\u200b original\u2063 intended use?<\/h2>\n
Rewriting \u2062Spending Parameters: Federal Bureaucrats Encourage Unnecessary Spending<\/p>\n
The federal government’s staggering\u2063 debt of nearly $34 trillion has \u200dbeen a cause of concern for \u200bmany Americans. With the\u2063 spending spree of the last few years being a significant contributor\u2062 to \u2063this debt, one would expect Washington to exercise some spending restraint. However, recent reports\u200b have shed light on the fact that \u2064federal\u200b bureaucrats are still encouraging states to spend “slush fund” dollars \u200cthat \u200bwere issued over two years ago. It is concerning that even when it comes to returning funds to\u200d taxpayers,\u200d this\u2062 fund is just one among many that should be prioritized.<\/p>\n
The report, issued by \u200dthe Economic Policy Innovation \u200dCenter, focuses on a rule implemented by the Biden administration just before Thanksgiving. This rule, which \u200cwas issued without prior public comment and without \u2063designation as a “major rule” subject to congressional notification,\u2063 allows\u200c states and local governments until\u200b 2026\u200c to spend funds initially appropriated in the 2021 “stimulus” measure. However, the rule also permits the diversion \u2062of up to\u200c 10 percent of \u2063these funds for purposes\u2062 such as reporting and compliance requirements,\u2063 audit costs,\u200c and record retention and internal control\u200c requirements – including funding personnel costs. In other words, \u200cthese federal dollars can now be used to fund \u2062bureaucrats’ salaries,\u200b an\u2063 addition of \u200bmore government employees that the American people do \u2064not need.<\/p>\n
The report further highlights some of the ridiculous spending associated with \u2063the $350 billion provided to state and local governments, with\u2063 previous cataloging done by the Associated Press and reported in The Federalist. This spending list\u200d includes $185 million in \u200bfederal funds spent on golf courses, funds allocated to circuses, the utilization \u2064of federal dollars to \u200dsupport services for asylum seekers, \u2063which contributes to the ongoing chaos at the border, and the\u2063 employment of “diversity, \u2063equity, \u200band inclusion” (DEI) coordinators in three states using\u200d federal taxpayers’\u200c money.<\/p>\n
One might question why such spending is taking place, particularly \u2064when the\u200b pandemic is seemingly over.\u2063 The report \u200cpoints out \u2063that out \u2062of the $350 billion allocated to state \u200cand local governments in \u200dMarch 2021, only $198 billion has been contractually obligated, with $241 billion budgeted by the relevant governments as of June. However, amidst the\u200c legal and procedural details\u2062 surrounding the Biden\u2063 administration’s\u2063 pre-Thanksgiving rule,\u200d an essential detail is often overlooked in the report.<\/p>\n
It is crucial to note that the $350\u2063 billion “slush funds” were appropriated\u2063 by Democrats and the\u200d Biden administration in March 2021 \u200cto\u2063 support the response to and recovery\u200d from the COVID-19 public health emergency, as stated by the Treasury. However, the public health emergency for the \u2062pandemic officially ended on May 11, with arguments suggesting that it \u200bshould have ended months, if not years, earlier. Therefore, with almost half\u2063 of the funds, \u2063$152 billion or 43.4 percent, remaining unobligated as of June\u2062 30, it is questionable how these federal \u200ddollars can contribute to a response to a pandemic that has already ended. Additionally, \u200bthe \u200cfact that states and local governments have not\u2063 yet appropriated these \u200cfunds after two and a half\u200d years\u2062 raises doubts about the\u200b level of emergency they truly face \u2062and whether they genuinely require the \u200bfunds.<\/p>\n
In conclusion, the \u2062ongoing\u200c encouragement\u200b of unnecessary spending by federal bureaucrats is a matter of concern\u200d for the nation, especially given the alarming debt the federal government is burdened with. \u2063The misuse and appropriation of funds\u200d not only fail to prioritize the interests of taxpayers but also raise questions about the true emergency that justifies such expenditures. It is imperative for policymakers \u200dto address this issue\u2063 in\u200b order to exercise responsible spending and safeguard the financial well-being of the country.<\/p>\n","protected":false},"excerpt":{"rendered":"
Spend excessively, despite the massive $34 trillion debt burden. Despite expectations, Washington shows no inclination to exercise fiscal discipline. A recent report exposes how federal officials persistently promote extravagant state spending, disregarding the urgent need for restraint<\/p>\n","protected":false},"author":521,"featured_media":2118317,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[],"class_list":["post-2118316","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2118316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2118316"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2118316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2118317"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2118316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2118316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2118316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}