The Department of Education has shifted future spending of COVID-19 school relief funds to a reimbursement structure due to waste, fraud, and abuse. Grantees must provide receipts before funding is released. States previously spent funds without proof of authorized use. Examples of abuse include renting out an MLB stadium and spending on casino hotel rooms.
Key Points
Grantees must provide receipts for every purchase before funding is released
States were previously able to spend funds without proving authorized use
Examples of abuse include renting out an MLB stadium and spending on casino hotel rooms
Pros
Increased transparency and accountability in federal expenditures
Prevention of misuse and abuse of taxpayer funds
Cons
Potential delays in funding disbursement due to reimbursement structure