Where Did Iowa’s Local Relief Funds Go?

In March 2021, Congress passed the American Rescue Plan Act (ARPA), the massive federal stimulus intended to provide economic relief from the pandemic. Out of this explosion of borrowed money, the law directed huge sums of money to state and local government. Not only did this bill have a direct impact on our current recession, but ITR Foundation's Sarah Curry has also discovered that the funds for local government may have been largely unnecessary in the first place.

So, where did all of the money go?

How much has been spent?

What was it spent on?

“It took over a year for the federal government to direct financial relief to local municipalities. Through hard work and fortitude, Iowa’s local governments survived with little damage,” said Curry. “This federal government stimulus appears to have been nothing more than excessive spending disguised as COVID relief. It has forced dollars into our economy, which has added to the national debt and had a huge inflationary effect.”

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