Tom Miller: Here is a better strategy for CARES Act funding

Seven months after Congress passed the CARES Act to stimulate the pandemic-stricken economy, dozens of state and local leaders tell me that much of the $253 billion directed to the states has gone unspent.

The act expires at the end of the year and the Treasury Department hasn’t updated data since July. Yet, they say, much of the money is still on the table.

Why would anyone turn away badly needed resources? The answer becomes apparent after spending any length of time with leaders outside Washington’s Beltway—people ranging from elected officials to local workforce boards.

They’re paralyzed because the federal government provided virtually no guidance on how to use the funding when the act was passed in March. Later direction was marginal at best.

Now, after critical months lost to ambiguity, state and local leaders cannot hope to draw up plans and deploy funds effectively before Dec. 31. A precious window of opportunity is about to close with few results to show for the effort.

Considering the limitations of the current act, it would be too early for Congress to authorize a second round of funding at this point. Any additional money would languish in the pipeline much like the initial round.

President-elect Joe Biden should call on Congress to instead tweak the current act. The act should be extended through 2021 to allow time for states and potential recipients like municipalities, counties, workforce boards, economic development organizations and schools to determine how to meet their immediate health crises and thrive in a post-crisis jobs environment.

The scope of the act also should be broadened to allow spending on planning and implementation. At local levels, many organizations lack resources to learn how to spend CARES Act funding, let alone navigate bureaucracies to apply for it. The process is intimidating.

An extended grace period and broadened scope would help states and communities develop new, forward-looking strategies to thrive in the long term, not just the short-term emergency. Some of the best ideas could appear from these diverse laboratories across the nation.

Take worker reskilling as an example. The pandemic caused entire industries and job categories to vanish into thin air and the CARES Act offered no comprehensive national strategy. With innovation left to the states, time and capacity are needed to develop ideas, particularly for people aspiring to rejoin the workforce with well-paying jobs.

Many observers note how COVID-19 has dramatically accelerated existing trends, such as remote work. Making CARES funding available for planning could have a similar impact on a budding trend in many smaller communities toward merging economic development and workforce training. A CARES infusion could help more communities modernize these overlapping functions and ultimately prepare workers for the rapidly evolving market.

Increasing the flexibility of the CARES Act would penetrate the funding deeper into hard-hit areas. Then, after states and communities have prepared for the long term, an additional round of funding could bring their plans to life.

As COVID rates rise across the nation, we can expect additional shutdowns and other measures to contain the outbreak. It is more important than ever that we make an impact with the funds.•

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Miller is president and CEO of Thomas P. Miller & Associates, an Indianapolis-based workforce and economic development consulting firm.