More than $5 billion in funds the federal government gave New Jersey for COVID-19 relief in 2021 has yet to be spent, a report from the state’s auditor found.
In May 2021, New Jersey received $6.24 billion through the U.S. Department of Treasury’s State Fiscal Recovery Funds. Of that, $1.1 billion has been spent, according to an informational report from the state auditor, David Kaschak. The remaining money has been allocated but not spent. The report, which was shared with the state’s legislative leadership and the executive director of the Office of Legislative Services, does not audit whether the funds were well allocated; rather, it is simply a tally of the money spent so far.
Pennsylvania also received almost $7.3 billion through the American Recovery Plan, according to the state Office of the Budget. The state Department of Treasury did not say how much of that has been spent, and the state’s auditor said it does not have the authority to audit federal funds before they have been used.
The Treasury Department said it issued more than $195 billion in state COVID-19 recovery funds as of 2022.
States have great leeway in how they can use the money. The funds, available through the American Recovery Plan Act passed in response to the COVID-19 pandemic, can support the public health response to the pandemic, but can also be devoted to support for households, businesses, and nonprofits hurt by the pandemic; infrastructure improvements; pay for essential workers; and to fill gaps in lost government revenue.
Among the funds that have been allocated in New Jersey but not spent are $305 million for affordable housing, $300 million for capital projects at Rutgers University, and another $300 million for water infrastructure.
State Republicans criticized Gov. Phil Murphy for allowing the money to sit idle.
“Senate Republicans have questioned for three years why the Murphy administration has shown absolutely no urgency in using billions of federal pandemic relief funds to help New Jersey families and businesses in a timely manner,” said GOP Senate Minority Leader Steven Oroho.
The Democratic governor’s office said the money, which must be spent by 2026 or returned to the federal government, is largely allocated for long-term projects.
“The SFRF is intended for long-term strategic recovery and resilience,” said Jennifer Sciortino, a spokesperson for the governor’s office. “The administration and the Legislature have dedicated SFRF to many transformative, one-time investments that are simply longer-term in nature.”
The design, planning, and procurement process, and the time needed for construction, means it could take years to spend much of the federal money on the projects already slated to benefit from it.
Of the $1.1 billion spent so far, the largest single amount, $471.8 million, went to eviction and homelessness prevention. Another $123.1 million supported emergency assistance grants for small businesses.
Other uses included a coronavirus fiscal recovery fund, county jails, improvements for child care facilities, and $15 million for World Cup and Meadowlands facilities. Locally, $37.5 million went to Cooper Health System in Camden for emergency preparedness improvements. Another $6.25 million went to the Camden County Municipal Utilities Authority.
