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U.S. demands local governments return millions in coronavirus relief funds due to missing reporting

JEFFERSON CITY, Mo. — The U.S. Treasury is trying to claw back COVID-19 relief funds from hundreds of local governments that received millions of dollars but never complied with requirements to report how the funds were spent.

The federal government is allocating $350 billion to state, local, territorial, and tribal governments as part of the American Rescue Plan approved by Congress and President Joe Biden in 2021. More than 30,000 governments, from the largest states to the smallest towns, will receive a portion of the funds.

Governments must disburse funds for specific projects by the end of 2024 and should submit quarterly or annual progress reports, depending on their population and the amount allocated. Most governments have complied. However, according to a GAO analysis, as of January of this year, approximately 1,000 major smaller governments had failed to submit any reports to the Treasury Department detailing how they had spent a total of $139 million in funds.

The Treasury Department has sent notices to local governments demanding the money be reclaimed, according to a report released last week by the Government Accountability Office.

In a letter accompanying the GAO report, the U.S. Treasury Department stated that as of June 24, 740 local governments had subsequently submitted reports and would no longer be required to repay their funds. Thirteen of these local governments had already returned the funds to the Treasury Department. However, 235 local governments still had never submitted reports or returned the pandemic relief funds.

The Government Accountability Office told the AP it does not have a specific list of governments that have failed to comply with the reporting requirements. The Treasury Department has not yet responded to AP’s request for a list of the 13 governments that have returned the funds and those that still haven’t reported on their use of the funds.

This isn’t the first time there have been concerns about the government’s failure to disclose how it is spending pandemic relief funds.

In October 2023, the Government Accountability Office reported that the Treasury Department had issued violation notices to more than 3,500 local governments that had failed to submit progress reports on pandemic relief funds. At the time, the Treasury Department refused to provide these violation letters to the Associated Press. Consequently, the AP filed a Freedom of Information Act request in January 2024 for copies of the violation notices and related letters. The Treasury Department has yet to comply with the request.

In its latest report, the Government Accountability Office said local governments’ failure to submit regular progress reports has limited the Treasury Department’s ability to determine whether funds are being used for permitted purposes.

2025
07/31
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Texas flooding updates: Abbott says 850 rescued as 27 still missing

Dozens of people are dead after heavy rain lashed Texas, leading to “catastrophic” flooding.

Texas Gov. Greg Abbott said emergency responders remained in a search and rescue posture, hours after the flooding along the Guadalupe River inundated nearby areas.

“So many people have been swept up into an extraordinary catastrophe,” Abbott said, asking for prayers for residents.

Children are among the dead, and about 23 campers from a summer camp in the area, Camp Mystic, were unaccounted for, Lt. Gov. Dan Patrick said at an earlier news conference.

2025
07/06
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4 US Army soldiers go missing in Lithuania during training exercise, vehicle recovered

Search and recovery efforts are ongoing for four U.S. Army soldiers who went missing during a scheduled training exercise near Pabradė, Lithuania, according to the Army.

The soldiers, who are all based in Fort Stewart, Georgia, went missing early Tuesday during a “maintenance mission” to recover another a vehicle in the training area, the Army said.

Lithuanian military police stand near military and other vehicles parked at a training range in Pabrade, north of the capital Vilnius, Lithuania March 27, 2025.
Mindaugas Kulbis/AP

The M88 Hercules armored recovery vehicle the four soldiers were operating at the time was found on Wednesday submerged in water in a training area, the Army said.

“A very complicated search and rescue operation is underway,” Lithuanian Defense Minister Dovile Sakaliene said at a news conference Wednesday. “It will definitely take some time.”

U.S. soldiers gather near military and other vehicles parked at a training range in Pabrade, north of the capital Vilnius, Lithuania, March 27, 2025.

Hundreds of U.S. and Lithuanian soldiers and law enforcement came together to search the “thick forests and swampy terrain,” the Army said in a statement Thursday.

But the conditions “complicated recovery efforts and have required specialized equipment to drain water from the side and stabilize the ground,” the Army said.

Engineers are building barriers out of dirt and sand “to create a contained area from which water can be pumped and mud dredged, providing emergency personnel on site access to the vehicle,” the Army said.

“It is very important for us to find those soldiers as soon as possible, because you all know how important is the presence of U.S. troops in Lithuania,” Lithuania’s chief of defense, Raimundas Vaiksnoras, said Wednesday. “Their soldiers are like our Lithuanian soldiers to us. So we spare no effort.”

“We will not rest till they are found,” Sakaliene said on social media Thursday.

The Army said it’s keeping the soldiers’ families updated on the search efforts.

2025
06/26
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