States spend federal COVID aid on roads, buildings, seawalls

By DAVID A. LIEB and KAVISH HARJAI
Associated Press

States are spending billions of dollars of federal pandemic relief funds on infrastructure projects such as roads, bridges and public buildings. The American Rescue Plan law signed by President Joe Biden last year provided $350 billion to states and local governments to respond to the coronavirus and shore up their economies. An Associated Press review of reports submitted by states shows they are spending more on infrastructure projects than on public health purposes. States are taking advantage of U.S. Treasury Department rules that grant broad flexibility to spend money on almost any government services as an offset to reduced revenue growth.