Having Sparked the Worst Inflation in 40 Years and Billions in Waste, Biden Administration Continues Big Spending with American Rescue Plan Funds

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.

• Milwaukee, WI has only spent $11 million of the $197 million from its first round of Rescue Plan funding. The city is scheduled to receive another $197.1 million.
• Phoenix, AZ is getting $198 million from the second tranche. Similar to money being spent on trees and parks from the first tranche, the city is spending $6 million on trees and $2.9 million for new playground equipment and to resurface athletic courts.
• The state of Arkansas is receiving another $786.6 million in the second tranche, even though the state has still not spent $55 million from the first tranche.
• Ohio cities and towns with less than 50,000 people are getting $422 million from the 2nd tranche. State lawmakers expressed concern that spending more money will further fuel inflation.

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:

• $1,400 stimulus checks going to Japanese citizens living in Japan
• $783 million worth of stimulus checks to prisoners
• $140 million for a luxury hotel development in Florida
• $20 million to modernize fish hatcheries in Maine
• $4 million for a bird sanctuary
• $15 million of taxpayer dollars to help develop a venue in New Jersey to host the 2026 World Cup
• $7 million to social media influencers to promote seafood
• $2 million to plant trees in New York
• $5 million for a moonshine walking trail
• $7 million for horse racing in Arizona
• $4 million for beach bathrooms and parking lots in South Carolina

Click here for more examples of waste from the American Rescue Plan.

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