Platte Institute Leads Way to Change Federal Policy for States

The Platte Institute is leading a coalition with the North Carolina based John Locke Foundation to give states more flexibility on how they use the money issued in the first CARES Act.  Some are asking for more money – we are just asking for flexibility in the money that has already been spent.  A letter has been signed by 26 organizations in 24 states as of Wednesday afternoon (4/22).

The Washington Times article talks about the downside of flexibility.

“Congress needs to fix the coronavirus stimulus it passed last month or else it will spur states to go on spending binges in order to use up the cash, even if it doesn’t actually help control the epidemic…”

and Forbes reported this morning,

“New costs associated with the Coronavirus outside of Medicaid (covered by the Families First Act) and education (covered in the Education Stabilization Fund) would not come close to the full amount appropriated except through budgetary gluttony,” the think tank heads explain in their letter. “Billions of dollars in tax and fee revenue, however, have been lost and cannot be recovered….While lawmakers in Illinois and elsewhere are demanding more money, it’s apparent that Congress needs to act to make coronavirus relief fund use more flexible for states.”

Some groups and states are asking for another federal relief package amounting to $500 billion in relief for state and local governments.  Our question to Congress is – Why not use the money you have already spent in a more effective manner before you spend more?