Hosemann, speaking in his Capitol office, said that “we continue to be concerned about how we are not passing off the American Rescue Plan funds.” Hosemann spoke out Thursday about the need to accelerate the spending of federal funds. Speaker Philip Gunn (R-Clinton), and other House leaders continue to indicate that expenditures of ARPA funds may be delayed until a tax cut agreement is reached between the Senate and the House. Gunn insists that legislation be passed to repeal the personal income tax. This is about one-third state general fund revenue. Although a modester tax cut was proposed by the Senate, it would still be the most significant ever passed by the state. Trey Lamar, Chairman of the House Ways and Means, stated that there is a possibility of additional legislation such as ARPA spending being frozen. “If they don’t get right on it, then that’s where it’s headed (other work being stopped).” Gunn, third-term speaker, stated, “We want elimination without further legislative action and we want it done so quickly.” Gunn stated, “This is an opportunity of a lifetime.” “… “This is the chance to do something right away that we will never again have in our lifetimes,” Gunn stated. Gunn also said that the House GOP majority was “in solidarity” with his income tax elimination. READ MORE: Philip Gunn, Delbert Hosemann are still at an impasse over tax cuts. Whether this solidarity will last if federal funding that could benefit House members’ local communities remains to be determined. According to data from the National Conference of State Legislatures, Mississippi is among four states, districts, or territories that have not allocated significant amounts of ARPA funding. This includes Oklahoma, Idaho, Nebraska, Oklahoma, and Washington, D.C. In part, the federal American Rescue Plan funds were provided to Mississippi to address the COVID-19 pandemic. The Mississippi Legislature is considering using the funds to assist local governments with water and sewerage infrastructure. They also have the potential to be used to support broadband expansion and state agency issues, including to settle major lawsuits against the state’s foster care system and mental health systems. Hosemann is worried about the ability of the Senate and House leaders to come to an agreement on the spending of the money. Hosemann took offense at the threat of other initiatives being stopped due to the tax standoff. He repeatedly said, “They took that same oath as I did.” This refers to the oath Mississippi legislators take when they are sworn in. It also includes the following passage: “I will never vote for any measure, person, or for any means of influencing them so as to do so.” Federal law requires that states commit ARPA funds before 2024, and then spend them by 2026. Hosemann expressed concern about the possibility that local governments might not be able to hire contractors to do the sewer and water improvements if the funds are not spent this year due to the tax battle. Hosemann, who preside over the Senate, stated that if we wait another year to spend the funds, it means we are behind all other states …,”. “If we wait another year, we might not be able get a contractor to complete the work in the time frame that we need. The fear is that the work is becoming a stalemate in the final two weeks of the session. This is bad public policy. Hosemann stated that as inflation continues to rise, funds won’t have the same return if they are used next year. He also said that it can take a long time for a county or city to obtain permits, engineering, and other preparation work for large infrastructure projects. Hosemann also expressed concern that Congress could change the law to make it more difficult for states to spend the funds or take them back. U.S. House leaders considered rescinding or “clawing back,” $7 billion worth of unclaimed American Rescue Plan Act funds last week as they were discussing a new COVID-19 funding bill that the Biden administration requested for Health and Human Services. This money would have been paid out of the ARPA main program for local and state aid. After outcry from lawmakers and states, the House leadership removed that provision from their plan. Hosemann mentioned Jackson as one city where ARPA money could make a difference, despite multiple local governments indicating that they would apply for state funds. The lieutenant governor stated that “you don’t have to travel further than Jackson to find out what the problems are.” Jackson is having issues with its aged water and sewer system, and federal officials have raised concerns about water safety. Jackson had stated that it needed $85 million from ARPA funds by the state to address its water and sewer problems. However, he expressed concern about whether this would be sufficient. The city has previously stated that $1 billion was needed to fix the system. READ MORE: Mississippi’s aging sewer system cannot be fixed by federal investments alone. Support this work today and make a regular donation to our Spring Member Drive. This will allow us to continue vital work such as this one.