Recovery Act Funds Continue to Provide Fiscal Relief

 

Accountability and reporting challenges need to be fully addressed to states and localities.
Courtesy of Government Accountability Office

View Full Size Image

Across the United States, as of September 11, the Department of the Treasury had outlayed about $48 billion of the estimated $49 billion in Recovery Act funds projected for use in states and localities in federal fiscal year 2009. More than three quarters of the federal outlays has been provided through the increased Medicaid Federal Medical Assistance Percentage and the State Fiscal Stabilization Fund administered by the Department of Education.

A substantial portion of the approximately $35 billion the Recovery Act appropriated for highway infrastructure projects and public transit has been obligated nationwide.

As of September 1, the Department of Transportation had obligated about $11 billion for almost 3,800 highway infrastructure and other eligible projects in the 16 states and the District and had reimbursed these 17 jurisdictions about $604 million.

Across the  nation, almost half of the obligations have been for pavement improvement projects because they did not require extensive environmental clearances, were quick to design, obligate and bid on, and could employ people quickly. For transit funds, the focus was on the Transit Capital Assistance Program, which received $6.9 billion—or 82 percent—of the Recovery Act public transit funds. Recovery Act funds obligated under this program are primarily being used for upgrading transit facilities, improving bus fleets, and conducting preventive maintenance.

Source: GAO