Almost a year after Congress passed the Coronavirus (COVID-19) Response and Relief Supplemental Appropriations (CARES) Act to stimulate the pandemic-stricken economy, only a fraction of the $2.2 trillion package has been spent. Much of the money remains on the table.
Why would anyone turn away badly needed resources? The answer becomes apparent after spending any length of time with leaders outside Washington’s Beltway—people ranging from State-elected officials to local workforce boards.
They’re paralyzed because the federal government provided virtually no guidance as to how to use the funding when the act was passed in March of 2020. Later direction was marginal at best.
A precious window of opportunity for State and local leaders is about to close with few results to show for the effort.
Congress should tweak the current act. The act should be extended to allow time for states and potential recipients like municipalities, counties, workforce boards, economic development organizations and schools to determine how to meet their immediate health crises and thrive in a post-crisis jobs environment.
The scope of the act also should be broadened to allow spending on planning and implementation. At local levels, many organizations lack resources to learn how to spend CARES Act funding, let alone navigate bureaucracies to apply for it. The process is intimidating.
An extended grace period and broadened scope would help states and communities develop new, forward-looking strategies to thrive in the long term, not just the short-term emergency. Some of the best ideas could appear from these diverse laboratories across the nation.
Take worker reskilling as an example. The pandemic caused entire industries and job categories to vanish into thin air and the CARES Act offered no comprehensive national strategy. With innovation left to the States, time and capacity are needed to develop ideas, particularly for people aspiring to rejoin the workforce with well-paying jobs.
Many observers note how COVID-19 has also dramatically accelerated existing trends, such as remote work. Making CARES funding available for planning could have a similar impact on a budding trend in many smaller communities, toward merging economic development and workforce training. A CARES infusion could help more communities modernize these overlapping functions and ultimately prepare workers for the rapidly evolving market.
Increasing the flexibility of the CARES Act would penetrate the funding deeper into hard-hit areas. Then, after States and communities have prepared for the long term, an additional round of funding could bring their plans to life.
As many communities prepare for additional waves and rounds of shut downs, it is more important than ever that we take the opportunity to deploy funds in effective, well thought out measures.
