Federal COVID-19 relief coming to Wisconsin and its local governments totals $20 billion, new report says

Patrick Marley
Milwaukee Journal Sentinel

MADISON - Congress is showering Wisconsin and its local governments with $20 billion in help because of the coronavirus pandemic, a report released Friday shows.

Since last year, Congress has passed five major spending bills to address COVID-19 and its toll. The two biggest ones cost more than $4 trillion, deepening the federal deficit but softening the economic blow of the pandemic. 

The spending packages have given Gov. Tony Evers wide latitude to spend more than $5 billion. They have also provided more than $4 billion in assistance for Wisconsin workers who were laid off and they have infused about $3.7 billion into schools, colleges and universities, according to the report from the nonpartisan Wisconsin Policy Forum.

"This influx of federal aid turns the dour fiscal outlook of last year into a far brighter one in which communities in the state may be able to address some of their most longstanding needs," the report concluded.

The report provides the best accounting yet of the funds flowing into the state because of the pandemic. It tallies $19.9 billion coming to the state but notes that figure likely understates how much Wisconsin will ultimately receive. 

By any measure, $20 billion is a stunning sum of money. For instance, it would be enough to run Milwaukee County for 17 years. 

The report notes the recent round of aid is about twice as much as Wisconsin governments received from Congress in 2009 in response to the Great Recession.

Gov. Tony Evers has spending leeway

The biggest share of the COVID-19 aid — $5.2 billion — comes as general relief to the state. Evers must follow federal rules for spending that money but has substantial leeway on what he does with it. He is concentrating the funding on the health care response and economic aid, such as with aid to businesses and renters. 

Republicans who control the Legislature are frustrated by the Democratic governor's ability to spend the money without their signoff. This month they passed bills to give them control of the federal money, but Evers vetoed them.

Local governments are also getting general relief, with Wisconsin counties and municipalities receiving $2.3 billion in the latest round of help. 

The federal government is providing more than $4 billion for the state's unemployment system because of the pandemic. That provided those who lost their jobs with extra help — $600 a week initially and $300 a week more recently. 

Another $3.7 billion is going to K-12 schools, colleges and universities and $800 million toward child care, the report found. 

Large sums are covering health care costs. The state is receiving an extra $600 million or so for its Medicaid program that provides services to the elderly, disabled and low-income people. Another $335 million is going toward COVID-19 testing.

Wisconsin communities are receiving $400 million for transit. Milwaukee and Madison could receive funding on top of that as they attempt to set up rapid bus service lines. 

Nearly $170 million is going to airports and another $210 million toward other transportation projects in the state, according to the policy forum. 

About $387 million is providing housing and assistance for rent and utilities. 

Other funds flowing to Wisconsin are targeted for a variety of purposes, such as criminal justice, elections, the environment and the arts. 

The report examines aid going to governmental entities but not directly to individuals. For instance, it does not include in its total the stimulus checks sent to Wisconsinites over the last year, which the nonpartisan Legislative Fiscal Bureau estimates to be $13.6 billion

The report also does not account for other funding that is available. For instance, the state could receive another $1 billion if it expanded the BadgerCare Plus health care program, but that is unlikely to happen because of opposition from Republican lawmakers. 

The report examines the spending provided under five congressional acts over the last year, including the recently approved American Rescue Plan and last year's Coronavirus Aid, Relief and Economic Security Act, which is better known as the CARES Act. It also takes into account action last year by President Donald Trump to extend some unemployment benefits. 

Contact Patrick Marley at patrick.marley@jrn.com. Follow him on Twitter at @patrickdmarley.