WASHINGTON, D.C. – Last month, a 2nd tranche worth $105 billion from the American Rescue Plan went out to states and localities. From early reports of how states and localities are planning to spend this second wave of federal tax dollars, it appears that Washington Democrats have not learned anything.
Even after the American Rescue Plan ignited the highest inflation in 40 years, the Biden Administration is still shoveling more money out the door for states and localities to waste and misuse while further fueling the inflation fire.
“High inflation was the predictable – and predicted – result of Washington Democrats’ $2 trillion spending spree,” said House Budget Committee Republican Leader Jason Smith (MO-08). “Inflation has risen 12.2 percent since Joe Biden took office. Americans are struggling to make ends meet and provide for their families, and yet Washington Democrats are foolishly trying to spend their way out of inflation by flooding the economy with billions in new spending. Not only will this lead to additional waste of taxpayer dollars but it will also further fuel President Biden’s inflation crisis. Even now, reports indicate that many states and cities have not yet spent all the money they received from the first tranche of American Rescue Plan funds. At the same time, all 50 states are currently running budget surpluses.”
A Flood of More Money
States and cities continue to receive billions in new American Rescue Plan funds despite having hundreds of millions of unspent dollars from the first tranche of funds.
Waste, Fraud, and Abuse from the First Tranche
For over a year, House Budget Committee Republicans have been documenting the ridiculous trail of waste and misuse of taxpayer dollars left behind by state and localities spending American Rescue Plan funds, including:
Click here for more examples of waste from the American Rescue Plan.