North Carolina's pandemic coffers are brimming with unspent federal COVID-19 emergency funds. Despite a substantial allocation from the American Rescue Plan Act of 2021 to the tune of $5.4 billion, meant to bolster the state's response to the pandemic's impact, a substantial $2.95 billion remains untouched as of mid-2024, according to a recent audit by the State Auditor's Office.
The audit highlighted that only 46% of the available funds were disbursed by June 30, 2024. With a looming deadline, state agencies must to act quickly in order to deploy these funds before they revert to the federal treasury by the end of 2026. State Auditor Dave Boliek emphasized the urgency, stating, "With funds not expended by the end of 2026 going to the U.S. Treasury, state agencies should be proactive in making sure taxpayers realize a return on the investment of these funds," as per the State Auditor's Office.
This inaction has left critical sectors with a surplus of undistributed resources. For instance, the Department of Environmental Quality has yet to request a staggering $1.7 billion. Similarly, the Department of Information Technology has a hefty $687 million sitting idle. The Department of Health and Human Services and the Department of Commerce are also among those with significant unrequested funds, $201 million and $54 million respectively.
Sectors like water infrastructure, broadband access, and environmental remediation are facing a slow injection of available funds. The audit lists, for example, the State Drinking Water/Wastewater Reserve Infrastructure Grants with $528 million in remaining funds, and the NC GREAT Grant – Federal Broadband Funds still with $326 million unclaimed. This financial stagnation poses a missed opportunity for advances in public health and connectivity to be more quickly realized. Critics urge state agencies to expedite their processes in order to fully utilize these allocations for the intended improvements across the state.
The results of this audit raise questions about bureaucratic efficiency and the mechanisms of fund deployment at a time when such resources could catalyze recovery and growth. As the December 31, 2026, deadline approaches, pressure mounts for state agencies to mobilize and ensure these federal dollars fulfill their purpose of aiding North Carolina's residents in the aftermath of a global health crisis. The full response from the North Carolina Office of State and Budget Management and the North Carolina Pandemic Recovery Office is available for review at the conclusion of the audit report.
