In 2021, as a component of the American Rescue Plan Act, Congress enacted the Coronavirus State and Local Fiscal
Recovery Funds program. Federal dollars were distributed to local governments on the basis of their population
size and their economic conditions during or shortly before the pandemic. Cities had considerable discretion about spending
these monies but they were targeted to fiscal problems exacerbated by the pandemic. All funds have to be spent by the end of 2026.

The federal reserve bank in Chicago just released a report about how Chicago and Detroit have or have not spent these funds. Detroit was allocated $827 million. According to this report, as of the end of 2022 the city of Detroit has budgeted only 60% of the $827 million. Only 31% of the $827 million has become
an obligatory allocation and only 6% of the $827 million had been spent.

I don’t know much about these matters. It appears that Detroit officials are using some of these funds to demolish abandoned commercial buildings. However, Congress, I think, has the power to claw back unspent funds. I am surprised that so little money has been allocated and spent. Does anyone know more about this?
Thank you.