PORTLAND, Maine (AP) Maine’s local governments seem to be in no hurry to spend nearly $502 million in federal pandemic aid.
Funding is intended to replace lost government revenue, provide economic relief and invest in infrastructure.
But most communities have yet to develop any major plans for spending the windfall, the Portland Press Herald reported. They have until 2026 to spend the money on eligible expenses.
“I think a lot of communities are still trying to get a handle around the issue and how best to invest that revenue,” said Kate Dufour from the Maine Municipal Association.
Direct payments of this magnitude are unheard of and could be used to make long-term investments, she said.
For now, the vast majority of Maine towns and cities have yet to receive funding from the American Rescue Plan Act.
Maine’s 16 counties and six cities that manage federal grants were allocated the first portion of funding this month. But almost 500 towns and cities set to receive $119 million as a pass-through from state government may have to wait until August to receive the money.
Local governments can’t use the money to pay down debt, cover pension obligations or finance rainy day funds.
