Delaware County Review

WASHINGTON, D.C. – Congressman Troy Balderson and Senator Eric Schmitt, along with a group of lawmakers, have introduced a disapproval resolution under the Congressional Review Act aimed at the Treasury's misuse of COVID recovery funds. The resolution is specifically addressing the Treasury's redefining of the original intention of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF).

In a statement, Congressman Balderson expressed his concerns about the Biden Treasury Department's handling of the COVID recovery funds, stating, "The Biden Treasury Department is scrambling to keep their 'COVID' slush fund up and running even though the public health emergency ended nearly a year ago." He further criticized the Administration for its reckless spending and the abuse of power exhibited through Treasury's Hoarding Rule.

Senator Schmitt echoed Balderson's sentiments, saying, "The Biden Administration has become synonymous with wasteful spending, inflationary policies, and economic negligence." He emphasized the need for fiscal responsibility and standing against out-of-control spending.

The American Rescue Plan Act of 2021 allocated $350 billion for the SLFRF, intended to aid state and local governments in COVID-19 economic recovery. However, there is still approximately $109 billion of unallocated funds. The original rule established that costs must be incurred by December 31, 2024.

However, the Treasury has now changed the definition of an "obligation," allowing states and localities to spend the funding beyond 2024 as long as they report potential ideas on spending to Treasury before the end-of-year deadline. This new interpretation only permits obligations for administrative and legal requirements, with no direct benefit to taxpayers.

The extension of COVID-19 era funding is perplexing, considering that the Biden Administration ended the federal Public Health Emergency for the pandemic on May 11, 2023.

The resolution aims to address the Treasury's redefinition of an "obligation," which contradicts the basic definition and Congressional intent. It also goes against the Government Accountability Office's definition of an obligation, which requires a present and definite agreement.

Congressman Balderson is joined by several Representatives in this effort, including Kevin Hern, Ben Cline, Michael Cloud, Randy Weber, Chuck Edwards, Byron Donalds, John Moolenaar, Andrew Clyde, Glenn Grothman, Doug LaMalfa, Kat Cammack, Harriet Hageman, Beth Van Duyne, and Jeff Duncan. Senator Schmitt leads an identical resolution in the Senate, with support from Senators Roger Marshall, Tom Cotton, Mike Braun, Marsha Blackburn, Rick Scott, Bill Hagerty, and Cynthia Lummis.

The full text of the resolution can be found on the official government website.

This Congressional Review Act resolution highlights the concerns of lawmakers regarding the Treasury's misuse of COVID recovery funds and their redefining of the original intention of the SLFRF. It aims to ensure fiscal responsibility and prevent the abuse of taxpayer-funded cash under the guise of a national crisis that has already passed.