COVID-19 still rages, but some U.S. states reject federal funds to help

By Andy Sullivan

(Reuters) – As the resurgent COVID-19 pandemic burns through the rural U.S. state of Idaho, health officials say they don’t have enough tests to track the disease’s spread or sufficient medical workers to help the sick.

It’s not for want of funding.

The state’s Republican-led legislature this year voted down $40 million in federal aid available for COVID-19 testing in schools. Another $1.8 billion in pandemic-related federal assistance is sitting idle in the state treasury, waiting for lawmakers to deploy it.

Some Idaho legislators have accused Washington of overreach and reckless spending. Others see testing as disruptive and unnecessary, particularly in schools, since relatively few children have died from the disease.

“If you want your kids in school, you can’t be testing,” said state Representative Ben Adams, a Republican who represents Nampa, a city of about 100,000 people in southwestern Idaho.

Meanwhile, the state is reporting the fifth-highest infection rate in the United States, at 369 confirmed cases per 100,000 people, according to the U.S. Centers for Disease Control and Prevention.

Schools in at least 14 of Idaho’s 115 districts, including Nampa, have had to close temporarily due to COVID-19 outbreaks since the start of the year, according to Burbio, a digital platform that tracks U.S. school activity.

Idaho’s experience illustrates how political ideology and polarization around the COVID-19 epidemic have played a role in the decision of mostly conservative states to reject some federal funding meant to help locals officials battle the virus and its economic fallout.

For example, Idaho was one of 26 Republican-led states that ended enhanced federally funded unemployment benefits before they were due to expire in September. Gov. Brad Little claimed that money was discouraging the jobless from returning to work. At least six studies have found that the extra benefits have had little to no impact on the U.S. labor market.

Idaho has also rebuffed $6 million for early-childhood education, as some Republicans in the state said mothers should be the primary caretakers of their children.

The state also did not apply for $6 million that would have bolstered two safety-net programs that aid mothers of young children and working families. Little’s administration said it had enough money already for those programs.

Idaho has accepted some federal COVID-19 help. In fact, the rejected funds are just a small portion of the nearly $2 billion in federal relief Idaho has spent since March 2020 to fight the virus and shore up businesses and families, state figures show.

But hundreds of millions more remain untouched. Idaho has deployed just $780 million, or 30%, of the $2.6 billion it received under the federal American Rescue Plan Act, signed into law in March.

Neighboring Washington state, by contrast, has parceled out nearly three-quarters of the $7.8 billion it received under that legislation. Washington has recorded roughly 60% as many cases per capita as Idaho since the start of the pandemic, according to the U.S. Centers for Disease Control and Prevention.

Some in Idaho are exasperated that a state of just 1.8 million people would turn down a dime of assistance when it’s struggling to tame the pandemic.

With no testing in place, nurses in Nampa schools rely mainly on parents to let them know when a child is infected, the district’s top nurse, Rebekah Burley, told the school board in September. She said she needed three or four more staffers to track existing cases and attempt to keep people quarantined.

“We’re tired, we are stressed, and something needs to change,” she said.

REJECTING FEDERAL MONEY

The refusal by red states to accept some types of federal aid that would benefit their constituents isn’t new.

For example, a dozen Republican-controlled states have rejected billions of dollars available through the landmark 2010 Affordable Health Care Act to cover more people under the Medicaid health program for the poor, which is jointly funded by the federal government and the states. Lawmakers from these places contended their states couldn’t afford to pay their share of an expansion. (Idaho initially was among them, but its voters opted in to the Medicaid expansion through a 2018 ballot referendum, bypassing state leaders.)

That same dynamic has played out during the coronavirus crisis. Since March 2020, Congress has approved six aid packages totaling $4.7 trillion under Republican and Democratic administrations, including the bipartisan CARES Act in March 2020 and the Democratic-backed American Rescue Plan Act this year.

Florida and Mississippi didn’t apply for benefits that would give more money to low-income mothers of young children. Four states, including Idaho, North Dakota and Oklahoma, opted not to extend a program that provided grocery money to low-income families with school-age kids in summer months.

Iowa, like Idaho, turned down federal money for COVID-19 testing in schools. New Hampshire rejected money for vaccinations.

Republican lawmakers in Idaho, like those elsewhere, cite concerns about local control, restrictive terms attached to some of the aid, and the skyrocketing national debt.

“We are chaining future generations to a lifetime of financial slavery,” said Adams, the Idaho legislator.

Yet even before the pandemic, Idaho long relied on Washington for much of its budget. Federal funds account for 36% of state spending in Idaho, according to the National Association of State Budget Officers, above the national average of 32%.

State officials say they have enough money to handle the COVID-19 crisis for now.

Critics say Idaho’s reluctance to use more federal aid is a symptom of its hands-off approach to COVID-19 safety. Few public schools require masks, and local leaders have refused to impose mask mandates, limits on indoor gatherings and other steps to contain the virus.

“There’s a lot of people in our legislature and some local officials who really have not taken this seriously,” said David Pate, the former head of St. Luke’s Health System, the state’s largest hospital network.

Idaho has one of the lowest vaccination rates in the nation, with only 55% of adults and teens fully immunized, compared to 67% nationally.

HOSPITALS FULL

COVID-19 is pummeling Idaho even as cases have plunged in much of the nation. Intensive-care units statewide are full, forcing hospitals to turn away non-COVID patients. At least 627 residents died of the disease in October, well above the previous monthly death toll of last winter, records show.

Idaho received $18 million through the American Rescue Plan to hire more public-health workers, but lawmakers did nothing with that money this year.

Some local public health departments say they do not have enough staff to track the virus. “We have a lot of people doing two or three jobs right now,” said Brianna Bodily, a spokesperson for the public-health agency serving Twin Falls, a southern Idaho city of 50,000. The department is working with a 12% smaller budget than last year.

Such staff shortages have contributed to a backlog of test results statewide, which the Idaho Department of Health and Welfare says is hurting its ability to provide an up-to-date picture of the disease’s prevalence.

With funding bottled up in the state capitol, Little, the governor, announced in August that he would steer $30 million from a previous round of COVID-19 aid to school testing.

The Nampa school district has requested some of that money but has yet to set up a testing program, spokeswoman Kathleen Tuck said. Roughly 20% of the district’s students were not attending class regularly in the first weeks of the school year due to outbreaks, according to superintendent Paula Kellerer.

Nampa resident Jaci Johnson, a mother of two children, ages 10 and 13, said she and other parents have been torn over whether to send their children to class, due to the potential risk.

“Do we feed our kids to the lions, or do we keep them home and make them miserable?” Johnson said.

(Reporting by Andy Sullivan; Editing by Scott Malone and Marla Dickerson)

Treasury warns Arizona it can’t use federal funds to undermine school mask requirements

By Andrea Shalal

WASHINGTON (Reuters) -Deputy Treasury Secretary Wally Adeyemo told Arizona’s governor on Tuesday that his state could not use federal funds to pay for programs aimed at undermining face mask requirements in schools, and said Arizona could lose funding if it did not change course.

In a letter to Governor Douglas Ducey, Adeyemo raised concerns about two new Arizona state programs funded under the coronavirus relief “American Rescue Plan” which he said would “undermine evidence-based efforts to stop the spread of COVID-19.”

Adeyemo’s letter comes a month after the U.S. Department of Education opened civil rights investigations to determine whether five states – Iowa, Oklahoma, South Carolina, Tennessee and Utah – that have banned schools from requiring masks are discriminating against students with disabilities.

One of the Arizona programs offers grants to school districts on condition they not require the use of face coverings during instructional hours. The second gives families a voucher of up to $7,000 per student to cover tuition or other educational costs at a new school that does not require face coverings if the student’s current school requires them.

Both programs tapped a $350 billion fund established under the American Rescue Plan to mitigate the fiscal effects of the COVID-19 emergency, which has killed over 700,000 people in the United States, Adeyemo said in his letter.

“A program or service that imposes conditions on participation or acceptance of the service that would undermine efforts to stop the spread of COVID-19 or discourage compliance with evidence-based solutions for stopping the spread of COVID-19 is not a permissible use of (such) funds,” he said.

Adeyemo asked Ducey to respond within 30 days on how Arizona planned to come into compliance with the federal requirements, warning that “failure to respond or remediate may result in administrative or other action.” Such action included federal efforts to recoup the funds, a Treasury official said.

Florida, Texas and Arkansas have also banned mandatory masking orders in schools. The Education Department left those states and Arizona out of its inquiry because court orders or other actions have paused their enforcement, it said in a news release.

(Reporting by Andrea Shalal; Editing by Mark Porter and Sonya Hepinstall)

Coronavirus impact spreads across U.S. as Congress readies aid

By Susan Heavey

WASHINGTON (Reuters) – The burden caused by the fast-spreading coronavirus accelerated across the United States on Wednesday beyond the hot spots of New York, California and Washington state as Louisiana and others faced a severe crush on their healthcare systems.

U.S. President Donald Trump issued the latest major federal disaster declarations for Louisiana and Iowa late on Tuesday, freeing up federal funds to help states cope with the increasing number of cases of the dangerous respiratory disease caused by the virus that threaten to overwhelm state and local resources.

That brings to five the number of states receiving major disaster declarations from the Republican president. New York – the state with by far the most infections and deaths – was given such status last weekend as well as California and Washington state.

Louisiana, where large crowds recently celebrated Mardi Gras in New Orleans and other locations, has reported a spike in infections with 1,388 total confirmed cases and 46 deaths as of midday Tuesday, according to the Louisiana Department of Health.

“I have determined that this incident is of such severity and magnitude that effective response is beyond the capabilities of state and local governments,” the state’s governor wrote the White House this week in seeking the declaration.

It was not immediately clear why Trump granted Iowa federal disaster relief and not some other states with many more cases. Iowa, where officials announced the state’s first death from the coronavirus on Tuesday, has reported 124 confirmed cases. (https://tmsnrt.rs/2w7hX9T)

A number of other U.S. states have also applied for major disaster relief status in recent days including Florida, Texas and New Jersey.

Nationwide, more than 53,000 people have been diagnosed with COVID-19, the disease caused by the virus that is particularly perilous to the elderly and people with pre-existing medical conditions, with at least 720 deaths. World Health Organization officials have said the United States could become the global epicenter of the pandemic, which first emerged late last year in the Chinese city of Wuhan.

The governors of at least 18 states have issued stay-at-home directives affecting about half the U.S. population of roughly 330 million people. The sweeping orders are aimed at slowing the spread of the pathogen but have upended daily life as schools and businesses shutter indefinitely.

Trump on Tuesday said he wanted to re-open the country by Easter Sunday, but later told reporters he would listen to recommendations from the nation’s top health officials.

The closures have rocked the U.S. economy with global markets rattled by the pandemic. Wall Street on Wednesday extended its gains from the previous session as lawmakers and the Trump administration reached a deal for a $2 trillion stimulus package to help businesses and millions of Americans hit by the economic fallout of the coronavirus pandemic.

The measure in Congress would provide a massive infusion of aid, including $150 billion in state and local governments to fight the outbreak, and could be passed by the Senate later on Wednesday. The measure would still have to pass the House of Representatives before Trump could sign it into law.

The plan also includes loan programs for hard-hit industries and small businesses, direct payments of up to $3,000 to millions of U.S. families, expanded unemployment aid and billions of dollars for hospitals and health systems.

National Guard troops have been activated to assist with the virus fight, while two U.S. Navy hospital ships have been directed to head to Los Angeles and New York City to help relieve the strain on local hospitals. The U.S. military is preparing field hospitals in New York and Seattle.

NEW YORK UNDER SIEGE

With more than 8 million people densely packed in New York City, New York has become the epicenter of the U.S. outbreak as the number of COVID-19 cases threatens to overwhelm its healthcare system.

The White House on Tuesday advised anyone who has visited or left New York to isolate themselves as the number of cases in the state swelled to more than 25,600 confirmed infections and 210 deaths.

Officials from the state have pleaded for more equipment and hospital beds and lamented a lack of urgency by federal officials in recent weeks as the threat grew increasingly dire.

New York Governor Andrew Cuomo, a Democrat, and Trump have clashed in recent days over the federal government’s response. Cuomo has called for thousands of new ventilators and urged the president to utilize his federal powers to speed up manufacturing for critical health equipment.

Trump, in a Fox News interview on Tuesday, defended his response, adding: “It’s a two-way street. They have to treat us well also.”

On Wednesday, Trump fired back against the reported tensions, tweeting: “I am working very hard to help New York City & State. Dealing with both Mayor & Governor and producing tremendously for them, including four new medical centers and four new hospitals. Fake News that I won’t help them because I don’t like Cuomo (I do). Just sent 4000 ventilators!”

A Reuters/Ipsos poll conducted from March 18-24 showed that 68% of U.S. adults agreed that the coronavirus was a serious existential threat, up 14 percentage points from a similar poll from a week earlier. This includes majorities of Democrats and Republicans, whites, minorities, young, old, urban, suburban and rural residents. The poll found that 33% now said they think it is very or somewhat likely they will be infected within the next year, up 5 percentage points from last week.

(Reporting by Susan Heavey; Editing by Chizu Nomiyama and Will Dunham)