Duval Times

Senator Rick Scott and Senator Eric Schmitt have introduced a disapproval resolution under the Congressional Review Act aimed at the Treasury Department's misuse of COVID recovery funds. The resolution is also targeting the department's redefining of the original intention of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).

According to Senator Schmitt, the Biden Administration's actions demonstrate wasteful spending, inflationary policies, and economic negligence. He believes that the recent move by bureaucrats in the Treasury Department to redefine how money is allocated from SLFRF highlights the administration's disregard for fiscal responsibility. Senator Schmitt emphasizes that standing against out-of-control spending should not be a partisan issue and vows to advocate for spending within means in Washington.

Representative Troy Balderson also criticizes the Biden Treasury Department for trying to keep the "COVID" slush fund active even though the public health emergency ended almost a year ago. He accuses the administration of indulgent spending and states that the Treasury's Hoarding Rule is an abuse of power by the federal bureaucracy. He argues that the rule is an attempt to circumvent Congress's deadline and prolong the taxpayer-funded cash giveaway. Representative Balderson asserts that the legislation introduced will prevent the administration from distributing billions of dollars under the guise of a national crisis that has long passed.

The disapproval resolution under the Congressional Review Act is supported by several senators and representatives. Senator Eric Schmitt is joined by Senator Roger Marshall, Senator Tom Cotton, Senator Mike Braun, Senator Marsha Blackburn, Senator Rick Scott, Senator Bill Hagerty, Senator Cynthia Lummis, Senator Ron Johnson, and Senator Joni Ernst. In the House of Representatives, Representative Troy Balderson leads an identical resolution with the support of several representatives.

The disapproval resolution is also backed by Americans For Prosperity, the National Taxpayers Union, and Heritage Action.

The background of the issue stems from the American Rescue Plan Act of 2021, which allocated $350 billion for the Coronavirus State and Local Fiscal Recovery Fund. The purpose of the fund was to assist state and local governments with COVID-19 economic recovery. However, approximately $109 billion of the fund remains unallocated.

The original rulemaking by the Treasury established that costs should be incurred by December 31, 2024. But the Treasury has now changed the definition of an "obligation" under the ARPA. States and localities are now allowed to spend the funding past 2024 if they report potential spending ideas to the Treasury in the coming months. However, these new obligations can only be for administrative and legal requirements and would not directly benefit taxpayers.

It is especially perplexing that COVID-19 era funding is being extended when the Biden Administration declared an end to the federal Public Health Emergency for the pandemic on May 11, 2023.

The redefinition of an "obligation" by the Treasury has caused concern among lawmakers. The new definition contradicts the basic understanding of an obligation and goes against the Congressional intent. It even deviates from the definition provided by the Government Accountability Office (GAO), which emphasizes the need for a present and definite agreement.

In summary, Senator Rick Scott, Senator Eric Schmitt, and their colleagues have introduced a disapproval resolution under the Congressional Review Act to address the Treasury Department's misuse of COVID recovery funds and the redefining of the original intention of the SLFRF. The resolution has garnered support from other lawmakers and organizations who are concerned about wasteful spending and the prolonging of taxpayer-funded cash giveaways.