Senate Republicans recently made an attempt to overturn new rules issued by the Biden administration concerning the use of COVID-19 relief funds. The rules in question allow states to utilize the funds for legal and administrative expenses beyond a previously set deadline. Senator Eric Schmitt sponsored a resolution to reverse this rule change, asserting that the Biden administration was disregarding the expiration dates outlined in the American Rescue Plan. However, the resolution was rejected by the Senate in a party-line vote, with Republicans in favor and Democrats and independents opposed.
The American Rescue Plan, which was enacted in 2021, allocated $350 billion for states and localities to address the impacts of the coronavirus pandemic. While the fund was intended for preserving government services and developing infrastructure, certain expenses are now permitted to be incurred past 2024 and must be expended by 2026. Republicans, including Senator Schmitt, have raised concerns about an exception to the 2024 deadline for specific costs, such as compliance, record-keeping, and audit expenses.
Senate GOP fails to roll back Treasury’s ‘abuse’ of COVID-19 relief funds https://t.co/vKEROnc80D via @dcexaminer
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Senator Schmitt estimated that the rule change would result in a $13 billion cost to the government, equating to $1,200 for every American family. He highlighted this as a significant amount of money during discussions with reporters.
The resolution, which was permitted to undergo a vote under the Congressional Review Act, aligns with the ongoing Republican stance against what they view as wasteful and improper usage of COVID-19 relief funds. Despite the White House issuing a veto threat against the resolution, citing potential negative effects on critical infrastructure and housing projects, Senate Republicans have persistently targeted various regulations implemented by the Biden administration through the Congressional Review Act.
In response to the resolution, Senator Ron Wyden argued that its approval could adversely impact numerous projects across the country. While the Treasury Department did not provide a comment, the Republican effort to oppose the Biden administration’s regulations aligns with a broader Republican objective to scrutinize and challenge the administration’s pol