Audit: New Jersey Sitting On $5 Billion In Pandemic Aid

By Christian Wade | The Center Square contributor, The Center Square New Jersey

April 20, 2023

(The Center Square) — "New Jersey is sitting on more than $5 billion in federal COVID-19 pandemic relief funds the state received two years ago," according to a new audit.

The report by New Jersey State Auditor David Kaschak found that while the state received $6.24 billion in federal American Rescue Plan aid in 2021, as of March 31, only $1.1 billion had been spent.
"That leaves $5.2 billion yet to be allocated by the state, with a 2026 deadline to spend the federal funds," according to the audit submitted to Assembly Speaker Craig Coughlin, Senate President Nicholas Scutari and Maureen McMahon, executive director of the state Office of Legislative Services.

Kaschak pointed out New Jersey has allocated ARPA money for several initiatives, including $472 million for the state's eviction and homelessness prevention programs and more than $123 million for the Small Business Emergency Assistance Grant Program.

Other expenditures from the state's Fiscal Recovery Fund include $25 million to purchase land for open space in Essex and Hudson counties, $15 million to upgrade a sports complex to improve New Jersey's bid to host 2026 World Cup games, and $5 million for upgrading stormwater drainage systems in the state's prisons.

Republicans have criticized the Murphy administration for not allocating the ARPA funds quickly enough, an argument they said was highlighted by the auditor's report.

"Senate Republicans have questioned for three years why the Murphy administration has shown absolutely no urgency in using billions of federal pandemic relief funds to help New Jersey families and businesses in a timely manner," Senate Republican Leader Steven Oroho, R-Franklin, said in a statement.

Sen. Declan O’Scanlon, R-Little Silver, noted that Republican lawmakers have offered a plan "to use relief funds efficiently and effectively to support small businesses, fix our broken unemployment and MVC computer systems, stop unnecessary tax increases, protect school funding, and help families in need."

"Unfortunately, Trenton Democrats refused to listen and many serious problems that could have been addressed with these funds remain inexplicably unresolved," he said.

The Murphy administration has defended its use of the federal relief funds, pointing out that ARPA money is intended for long-term strategic recovery, not short-term spending.

Under federal law, the pandemic relief funds must be allocated by the end of 2024 and spent by 2026. After that, any unused funds must be returned to the U.S. Treasury.

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