Government Business
Article | March 11, 2022
The CARES ACT (Coronavirus Aid, Relief, and Economic Security) passed by Congress created a sprawling, multi-faceted plan to combat COVID-19 and its debilitating effects on the U.S. economy. Signed into law in March, the $2 trillion relief package allocated funding for preserving jobs, backfilling government budgets, helping school districts, providing assistance for the unemployed and establishing grant programs for various industry sectors such as transportation and telecommunications.
There are murmurs of a second stimulus bill which could be debated as soon as July, with the president on July 2 expressing his support for one. But, billions of dollars remain in the CARES Act funding for numerous programs. Much of that funding has reached recipients already, and more should start flowing at any time. All parties and stakeholders are eager, of course, for the funding to reach governmental entities. CARES Act funding programs include the following examples.
The Elementary and Secondary School Emergency Relief, or ESSER, program was established with approximately $13.2 billion. This funding is designated for public school districts through an application process that has oversight from each state’s centralized education agency. Texas school districts received $1.29 billion through the program, just behind the state of California, which received the highest allotment at $1.6 billion. Other states receiving a larger share of ESSER funding are New York ($1.03 billion), Florida ($770 million), Illinois ($569 million), and Georgia ($457 million).
The program requires that at least 90 percent of the grant funding must be awarded to schools that received Title I, Part A funding during the 2019-20 school year. That stipulation will result in only school systems with a high number of students from low-income families being eligible for the bulk of the revenue. Applications are to be submitted to the state education agency for review and approval. However, decisions about how the funding is used are to be made by local officials in the school districts.
Another part of the CARES Act provides billions more in funding for airports. The Airport Improvement Program (AIP) offers $10 billion in distributions through grants for capital projects. This revenue can also be used to fill funding gaps in fiscal year 2020 budgets, since airport systems throughout the nation sustained such heavy losses as a result of the pandemic. Previously, the grants required a local funding match, but the CARES Act increased the federal share to 100 percent.
The AIP program allocates $7.4 billion for commercial airports that serve more than 10,000 passengers annually. Another $2 billion is set aside for commercial airports and general aviation airports. Looking at the listed intended uses of these funds, it appears that many airports will have thousands of upcoming contracting opportunities. Millions will be spent on projects to extend and/or rehabilitate runways. Other airports plan to install new lighting, expand terminals, purchase additional safety equipment, reconfigure taxiways, conduct studies, and develop planning documents for future expansion.
Cities and counties are most eager to participate in the $5 billion in funding available for local government programs and projects through the Community Development Block Grant, or CDBG, program. This funding is intended for local governmental officials to use for corridor redevelopment, economic development initiatives and other projects. Every state received funding and some of the larger allocations were designated for Texas ($63.4 million), California ($113 million), Florida ($63 million), and New York ($70.5 million).
The U.S. Economic Development Organization continues to accept applications for projects that reinvigorate regional economic recovery, with $1.5 billion earmarked in the CARES Act for the Economic Adjustment Assistance Program. Through grants for projects that “leverage existing regional assets,” this program is designed to support economic development within distressed communities. Funding is available to states, counties, universities, and regional planning organizations, as well as for public-private partnerships.
Examples of funding allocated through the program include the award of a $400,000 in grant to the Kennebac Valley Council of Governments in Maine to update its economic development plans and provide COVID-19 services. In Texas, the Concho Valley Council of Governments in San Angelo received a $2.2 million grant to purchase a building for its regional headquarters.
The city of Odessa is using $927,708 in CDBG grant money for several social services programs and to supplement local nonprofits’ efforts during the pandemic. And the city of Lewisville recently received $5.8 million in CARES Act money, which includes $452,305 in CDBG grants.
The Federal Transit Administration is distributing $25 billion with approximately $22.7 billion earmarked for large and small urban areas and $2.2 billion set aside for rural areas. This funding does not require a local match of any kind, and it can be used for capital projects and for operations and/or planning purposes, as long as those activities relate in some way to COVID-19.
Transit agencies in urban areas with a population over one million --- such as Cap Metro, which received $104 million --- are getting $17.5 billion through the FTA. Transit agencies serving areas with populations fewer than one million --- such as Brownsville, Texas, which is receiving $7.6 million --- are getting $5.1 billion.
In the middle of the current, historic pandemic, the economy will significantly be stimulated by projects and initiatives that result from this funding. Public-private collaboration will not only create jobs and generate additional revenue flow, it will result in getting Americans working together again … and that will serve the country well.
Mary Scott Nabers is president and CEO of Strategic Partnerships Inc., a business development company specializing in government contracting and procurement consulting throughout the U.S. Her recently released book, Inside the Infrastructure Revolution: A Roadmap for Building America, is a handbook for contractors, investors and the public at large seeking to explore how public-private partnerships or joint ventures can help finance their infrastructure projects.
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Government Business, Government Finance
Article | July 12, 2022
We’re starting to get the first independent analysis of the impact of the measures the U.S. Congress has passed to provide relief will have on the U.S. government’s fiscal situation. The Committee for a Responsible Federal Budget is first out of the gate with its preliminary findings, here is their main takeaway: Our latest projections find that under current law, budget deficits will total more than $3.8 trillion (18.7 percent of GDP) this year and $2.1 trillion (9.7 percent of GDP) in 2021. We project debt held by the public will exceed the size of the economy by the end of Fiscal Year 2020 and eclipse the prior record set after World War II by 2023. Keep in mind that prior to the coronavirus pandemic, the U.S. government was planning to spend $4.8 trillion in its 2020 fiscal year, borrowing $1.1 trillion. With the CRFB’s estimate of $3.8 trillion, the U.S. government will be borrowing more than the $3.7 trillion it had hoped to collect in taxes for the year.
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Article | May 26, 2021
During the pandemic, the United States supported the WHO through collaborative operations. Let’s understand in detail below.
The United States government has historically supported WHO financially, through involvement in governance and diplomacy, and through collaborative operations. A new chapter in the U.S. relationship with WHO began in 2020, following the start of the COVID-19 pandemic, when the Trump administration ceased financial support and started the process to withdraw the country from membership.
Financial Support:
The United States has traditionally been the single largest donor to WHO, but in the 2020–2021 period it was the second largest as other donors, particularly Germany, increased their contributions. The U.S. dropped to third place. The United States contributed an anticipated $581 million to the WHO in 2021 as a result of restored funding from the Biden administration, which included both assessed and voluntary contributions.
The assessed contribution for the United States has been set at the maximum permitted rate of 22% of all assessed payments from member states for a number of years. The U.S. assessed contribution has been very consistent between FY 2014 and FY 2022, varying between $110 million and $123 million.
Increased U.S. support for particular WHO initiatives, such as emergency response, may be reflected in higher levels of voluntary contributions. Other WHO initiatives supported by U.S. voluntary donations include the fight against polio, maternal, infant, and child health initiatives, food safety initiatives, and regulatory monitoring of pharmaceuticals.
Governance Activities:
The United States has long been a prominent and involved member of the World Health Assembly, sending a sizable delegation that is typically headed by a delegate from the Department of Health and Human Services and includes representatives from numerous other U.S. agencies and departments.
Technical Support:
Government officials from the United States frequently act as liaisons at WHO regional offices and headquarters, collaborating daily with employees on technical initiatives.
Partnering Activities:
The United States has collaborated with WHO both before and during epidemic responses and other global health emergencies, notably by joining multinational teams that WHO organises to look into and address outbreaks all around the world. For instance, the US collaborated with WHO and the larger global response to the 2014-onset Ebola epidemic in West Africa, and US scientists were a part of the WHO mission that visited China in February 2020 to evaluate their COVID-19 response.
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Article | May 27, 2021
Over the last year, we’ve all witnessed years of digital transformation in a matter of months. A recent survey from the Economist Intelligence Unit (EIU), sponsored by Microsoft, shows that government respondents were the second-most likely group (after financial services) to report increased investment in digital transformation since the start of the pandemic. As governments around the world continue to look to technology and innovation to respond to the challenges of today, here are five (free) things governments are doing to step-change the way they can achieve their economic, social, and sustainability objectives in the future.
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