Billions in Federal Covid-19 Testing Funds Still Unspent

Most of the congressionally approved $25 billion has yet to be disbursed by HHS and states

By Scott Patterson & Sarah Krouse of The WSJ. Excerpts:

"Billions of dollars in federal funds earmarked for boosting nationwide Covid-19 testing remain unspent months after Congress made the money available, according to the U.S. Department of Health and Human Services.

In April, Congress allocated roughly $25 billion for federal agencies and states to expand testing, develop contact-tracing initiatives and broaden disease surveillance.

According to HHS data, only about 10% to 15% of that total has been drawn down, meaning the cash has been spent or committed to various efforts. The funds for various testing initiatives were part of the Paycheck Protection Program and Health Care Enhancement Act."

"Of the $25 billion, some $10.25 billion was sent to states and U.S. territories in May to expand testing and develop contact-tracing programs at their discretion, but as of Aug. 14, just $121 million of that pool of funds had been drawn down.

Reasons for the lack of spending vary. Some states are still identifying the testing and contact-tracing services they think will be the most effective. It can take time to solicit bids, award contracts and pay for services rendered. Also, states aren’t spending money on some testing materials such as reagents that the federal government helps them source, HHS spokeswoman Mia Heck said."

"More than $8 billion of the $25 billion is to be spent at the discretion of HHS. Much of that money hasn’t been distributed yet, Ms. Heck said."

"Of the $25 billion in PPP funds for testing, another $5.7 billion was to be sent to various government agencies involved in testing, such as the Centers for Disease Control and Prevention and the Food and Drug Administration. As of this week, $1.62 billion of those funds had been obligated or committed to the agencies, according to HHS.

Agencies including the National Institutes of Health were to use those funds to buy diagnostic and serological tests, source lab supplies and develop new testing technologies.

Federal relief packages also included $2 billion to pay for testing uninsured individuals. Of that, $235.5 million has been spent."