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Baltimore on deadline to commit federal COVID-19 funds – or lose the money
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Baltimore on deadline to commit federal COVID-19 funds – or lose the money

Baltimore is fast approaching the deadline to commit all of its $641 million in federal COVID-19 relief funds by the end of this year — or it will lose the money.

About $501 million had been committed as of September 30, according to a new report released Thursday by the Mayor’s Office of Recovery Programs. That figure does not include interagency agreements, according to recovery manager Shamiah Kerney. Taking into account interagency agreements, the allocation matches the $619.7 million presented by Kearney at an Oct. 3 City Council meeting. Kerney did not respond when the Baltimore Sun asked whether more money had since been committed.

Efforts to commit funds have come a long way since earlier this year, when about half funds had still not been committed. The money was allocated as part of the American Rescue Plan Act, signed by President Joe Biden in 2021. If the funds are not obligated by the end of this year, the city must return them to the U.S. Treasury .

A quick look at the city’s ARPA dashboard shows that 100% of funds have been “committed,” but to meet Treasury’s definition of “committed,” the money must be allocated to a project.

While the vast majority of funds are now obligated, only about half — $328 million — has been spent, according to Thursday’s report. This represents an increase of 13.5% since the last quarterly report published in July. The deadline to spend the full $641 million is set for the end of 2026.

The largest categories of financial commitments are housing ($193 million), urban infrastructure ($144.8 million), public spaces and parks ($69.4 million), training and education ($49.3 million), violence prevention ($36 million) and household assistance ($35.5 million). according to the Recovery Office data dashboard.

Although the funding was initially motivated by the COVID-19 pandemic and government shutdowns, Baltimore and other cities have used the funds for a variety of purposes not directly related to the pandemic, including a guaranteed income pilot program.

The slow deployment of funds has been similar to other cities and a source of concern.

“Our commitment is to not leave a dollar on the table,” Kerney told the council earlier this month. “This is a city that is way too desperate to allow money to flow back into the U.S. Treasury, and we are committed to making sure that doesn’t happen.”

The city committed $8.3 million in ARPA funding to hire a consulting firm, Guidehouse Inc., to help manage ARPA funds.

Do you have a current tip? Contact Brooke Conrad at [email protected]443-682-2356 or @conrad_brooke on X.