Federal COVID-19 Aid Dries Up In Minnesota: $165 Million Remains In CARES Act Funds

From the Minnesota Reformer:

By Ricardo Lopez
September 4, 2020

Just $165 million remains of the more than $2 billion in federal funding allocated to Minnesota under the Federal CARES Act as of Aug. 31, according to a report issued Thursday by the Minnesota Management and Budget office.

The bulk of the money went to local governments, including $317 million to Hennepin and Ramsey counties; $841 million went to remaining counties, cities and townships.

Schools received $245 million to assist with in-person instruction, online learning and to address learning loss. The pandemic has disproportionately affected students of color, who are less likely to have access to technology necessary for distance learning.

Housing support and rental assistance received $100 million, and the state is spending $177 million on COVID-19 testing.

The $165 million balance is what remains from the federal aid Congress approved in late March. Congress and the White House have been in negotiations throughout the summer for an additional round of aid, with Democrats calling for additional funding for ravaged state and city budgets.

Minnesota, which reported a budget surplus before the pandemic was declared, now faces a $2.4 billion deficit.

Congressional negotiators are still far apart on the size of any further aid to state and local governments. Democrats have proposed a $3 trillion aid package, of which $1 trillion would go to state and local governments. Senate Republicans, however, have pushed for an overall $1 trillion package that would include $150 billion for state governments.

The Minnesota Reformer is an independent, nonprofit news organization dedicated to keeping Minnesotans informed and unearthing stories other outlets can’t or won’t tell..