Could Congress give Memphis more stimulus money?
Memphis and other cities could get more flexibility with the CARES Act money not yet spent, U.S. Rep. David Kustoff, R-tennessee, said in an interview this week.
Kustoff said bipartisan negotiations on Capitol Hill for a spending bill through the end of the year could include the possibility of giving cities and states more options in how they use the federal dollars that have patched up their budgets.
“In these negotiations, does the federal government give flexibility to state and local governments to use some of that money not spent for other ... expenses because right now, the way the law is written, if that money is unused, then it goes back to the federal government by the end of the year,” Kustoff said.
Memphis received $113 million in CARES Act funding this spring. Though it has spent much of the money, the city has looked for more flexibility in using the remaining dollars, but the requirement that the money be used only for COVID-19 related expenses proved a hurdle in recent weeks.
It delayed sending $2.5 million in utility assistance to the Metropolitaninterfaith Association, in part, due to making sure it had a contract with MIFA that ensured only people who needed the assistance because of COVID-19 could get it. That added a hurdle at a time when thousands of Shelby County residents were eligible to be disconnected from their utilities.
Kustoff said it’s possible that the deadline for using the CARES Act funds could be extended beyond Dec. 31, but said there appears to be more support, on both sides of the aisle, for removing restrictions on the dollars.
“There’s some bipartisan support on Capitol Hill for that. Of course, in these negotiations, there’s also talk about giving additional money to cities and states whose budgets have been impacted by COVID-19,” Kustoff said.
Kustoff, who lives in Germantown and represents Tennessee’s Eighth District, also noted the long-term impact of federal stimulus on the U.S. deficit, which has reached a percentage of the nation’s gross domestic product not seen since World War II. That growth in the deficit has caused concern among some Senate Republicans.
“The national debt is approaching $26 trillion. It’s an incredible amount of money. And we’ve seen an explosion of federal spending over the last X number of years and certainly over the last six months,” Kustoff said.
“The other argument is that if we as a nation had not done what we did in March with the CARES Act, the long term may not have mattered because we would be severely impacted in the short term. But we must be concerned about
“Of course, in these negotiations, there’s also talk about giving additional money to cities and states whose budgets have been impacted by COVID-19.” U.S. Rep. David Kustoff
the long-term implications of the other federal debt.”
Abraham Accords
Kustoff watched from the South Lawn of the White House when President Donald Trump signed the Abraham Accords — a normalization of relations among Israel, Bahrain and the United Arab Emirates.
Kustoff praised the president’s actions in the Middle East and described the agreement among the three countries as a generational moment similar to one that came 26 years ago, when Israel and Jordan signed a 1994 peace treaty.
“I listened very carefully to what President Trump had to say, Prime Minister (Benjamin) Netanyahu and the UAE and then Bahrain officials ... peace is tough. Negotiating peace is tough,” said Kustoff, one of two Jewish Republicans in the House of Representatives. “But you got to give credit to Israel, to the UAE, to Bahrain, and certainly to President Trump and his team who brought them together and helped negotiate the peace.”
Israeli media, including columnists for the newspaper Haaretz, have described the deal as a business transaction: Normalization of relations with Israel could allow further Israeli investment in two countries that are dependent on oil and gas prices for much of their revenue. And it could allow further expansion of arms sales to the nations.
“The agreement serves a number of purposes . ... The cooperation that will be spread across fields like education and health care and ... security and trade . ... Hopefully, it also sends the signal to other nations in the region that this is the path,” Kustoff said, noting the agreement could go beyond arms sales and facilitate potential recognition of Israel from other countries.
On “Fox and Friends” this week, Trump was asked if he would sell advanced arms to the United Arab Emirates and Bahrain, such as the F-35 fighter jet — aircraft that the U.S. has used as a diplomatic carrot and stick.
“I would have no problem selling them the F-35 . ... I view it as an asset, not a liability,” Trump said.
Such sales could attract congressional scrutiny, something Kustoff, and the leaders of both parties, noted this week.
“I would think that the president would seek counsel from Congress and congressional approval. Now, the fact of the matter is that over the next 47 days, it’s gonna be tough to get things done and get things accomplished before the Nov. 3 election. But Congress needs to weigh in on that decision,” Kustoff said.