Senate Republicans attempted to overturn new regulations from the Biden administration that allow states more flexibility in using COVID-19 relief funds but were unsuccessful. Last fall, the Treasury Department implemented rules permitting states to use funds for legal and administrative expenses beyond a previous deadline. Senator Eric Schmitt (R-MO) sponsored a resolution to reverse this rule change, contending that it violated the expiration dates set in the American Rescue Plan.
Despite 46 Republican senators voting in favor, the Senate rejected the attempt to roll back the regulation in a party-line vote on Wednesday. The American Rescue Plan, passed in 2021, allocated $350 billion for states and localities affected by the pandemic, with a focus on preserving government services and infrastructure projects. Funds remaining after three years can be used until the end of 2024 and must be spent by 2026.
Senator Schmitt and other Republicans raised concerns about an exception to the 2024 deadline allowing for certain costs to be estimated and submitted in the coming months. Schmitt estimated the rule change could cost the government $13 billion, emphasizing the financial impact on American families.
The resolution fed into claims of waste and abuse by Republicans aiming to recover COVID-19 relief funds. The White House issued a veto threat, warning of potential disruptions to infrastructure and housing projects, as well as risks to public safety workers and taxpayer dollars.
This resolution was the latest in a series of Congressional Review Act actions by Republicans targeting regulations implemented by the Biden administration. Democrats, including Senator Ron Wyden (D-OR), argued that the resolution could negatively impact numerous projects nationwide.
