Home
/
RELIGION & LIBERTY ONLINE
/
States’ rights, federal behavior: Alabama and COVID-19 spending
States’ rights, federal behavior: Alabama and COVID-19 spending
Feb 2, 2026 12:02 AM

“Power tends to corrupt, and absolute power corrupts absolutely” – Lord Acton.

Former Chicago Mayor Rahm Emanuel is known for saying, “You never want a serious crisis to go to waste. And what I mean by that, it’s an opportunity to do things you think you could not do before.” As President Joe Biden signs the $1.9 trillion COVID-19 relief bill, the $350 billion in direct grants to state, local, and tribal governments should not lead us to assume that the money will be effectively allocated. For many states, the federal government’s COVID-19 relief grants will be an opportunity for states to be just as reckless as the federal government. According to a recent study by the Alabama Policy Institute, for example, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, if Alabama’s CARES spending gives us a window into how states behave when flooded with cash, local residents may not see the relief promised by the Biden administration.

According to the study – titled “Alabama’s Use of CARES Act Funds: Grow Government or Help All Alabamians?” – the state misallocated more than half of the money given to the state. After the state received $1.9 billion from the federal government, like lions and hyenas at an animal kill, state politicians began to fight over the bounty. Both Gov. Kay Ivey and the legislature initially had plans to spend the money. However, the legislature hardly convened for multiple months during the pandemic. When they did meet, a proposal came out including hundreds of millions of dollars of the relief money for capital renovations and a new state house building. What did that have to do with the pandemic? The legislature eventually sent Gov. Ivey a better proposal, giving her control over a portion of the funds. In a move that undermines the concept of federalism, state legislators handed virtually all authority to determine how the money would be allocated to the governor and unaccountable, unelected state government agency bureaucrats.

As noted in the study, “much of the money has been used to grow government, not to help citizens and businesses within the state that have faced hardships as a result of the pandemic.” Only 23.7% of the funds went to the private sector, mostly toward grants where government bureaucrats decide who wins and who loses. Sadly, these grants were poorly publicized, not given to those most in need, and not large enough to make too much of a difference. (Maximum grants were $15,000.) Additionally, 29.5% ($389 million) reimbursed state and local governments. The legislature was reimbursed over $985,000 for equipment purchases, including a tablet system for socially distanced voting, even though officials only met for two weeks from the beginning of the pandemic to January 2021. Approximately $300 million was transferred to the state’s Unemployment Compensation Trust Fund. Again, what does that have to do with the pandemic? Overall, the proportion of funds used to “reimburse state government” rose to 52% ($689.7 million). That is, as the study rightly concludes, “over half of the money has thus far been used to support government, rather than citizens.” Never allow a serious crisis to waste the opportunity for more taxpayer money to balloon the scope of government.

It seems that Alabama failed the men and women of Alabama who needed the money the most. On March 1, 2020, Alabama’s unemployment rate was only 3.5%. A few weeks later on March 27, 2020, Gov. Ivey ordered what she determined to be non-essential businesses to close. By the end of April, unemployment rose to 13.8%, a nearly 300% increase, according to the study. Instead of the state using federal money to help taxpayers, the funds were used for government officials and bureaucrats to help themselves with little to no legislative input. In the final analysis, we see that we are not necessarily better off when power is decentralized and given over to the states, only for states to turn around and behave like the federal government.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Conferencia: Instituciones, Ética y Finanzas
El alivio de la pobreza y el desarrollo económico dependen en gran medida de la creación de riqueza que proviene de la iniciativa empresarial y de negocios. Pero ni ercio ni la libertad empresarial podrán florecer en un ambiente donde la estabilidad monetaria está ausente, el sistema bancario es débil, los derechos de propiedad carecen de protección, y el marco legal es arbitrariamente quebrantado. ¿Cuáles son los fundamentos morales y económicos de estas instituciones? ¿Cómo se pueden crear y proteger...
Pope Benedict: Justice is not enough
Last Saturday Pope Benedict XVI addressed a group called Italian National Civil Protection, made up largely of volunteers. This is the organization that provided much of the crowd control at two of Rome’s largest public events, the World Youth Day in 2000, and the funeral of Pope John Paul II in 2005. (I was in Rome for both events and can personally attest to the surprising order these volunteers brought. If only the same order could be seen in everyday...
Review: In the Land of Believers
In what is another book that points to America’s cultural divide, Gina Welch decides to go undercover at the late Jerry Falwell’s Thomas Road Baptist Church in Lynchburg, Virginia. An atheist, Yale and University of Virginia liberal graduate from Berkeley, California, Welch declares her undercover ruse was needed to better understand evangelicals. In the Land of Believers, Welch decides to fake conversion, e baptized in the church, immerse herself in classes, and even goes to Alaska on a mission trip...
QOTD: Why economics matters
The control of wealth is the control over human life. So if a centrally planned economy decides how wealth is to be created and how it is to be distributed, then they really have a control over human life. That’s from Arnold Beichman, the journalist and scholar, who died Feb. 17 at the age of 96. The Heritage Foundation InsiderOnline Blog retrieved the quote from a 2004 article in a Columbia College alumni magazine. There was also this: Centrally planned...
‘Man is man’s greatest resource’
recently asked me ment on statements made by Ettore Gotti Tedeschi, president of the Vatican bank, about the economic effects of demographic decline in Western industrialized countries. Tedeschi told the Zenit news service that the “true cause” of the financial crisis is the low birth rate in these countries. “Instead of stimulating families and society to again believe in the future and have children […] we have stopped having children and have created a situation, a negative economic context...
Faith through failing works?
The Civil Society Trust reviews Jay Richards’ book “Money, Greed and God” (buy it here) and reflects on passion. We can read in Genesis that man was created by God, in His own image. Richards expands on that in a way that struck me as particularly novel. If God is the Creator with a capital ‘C’, then being created in His image, mankind has been endowed with the ability to create as well — we are creators with a little...
Beyond Sovereignty: Money and its Future
Over at Public Discourse, Acton’s Samuel Gregg has just published a piece about the future of money. The issuance of money, he writes, is often associated with issues of national sovereignty, despite the fact that governments have long abused their monopoly of the money supply. Gregg argues, however, that the role played by mismanaged monetary policy in the 2008 financial crisis may well open up the opportunity to consider some truly radical options for how we supply money to the...
Tiger Woods, Morality, and the Market
Via Victor Claar (follow him on Twitter here), an op-ed in The Oracle (Henderson State University’s student paper) by Caleb Taylor, “Tiger Woods and Capitalism.” A taste: “Contrary to what Michael Moore thinks, capitalism promotes moral and ethical behavior. In Woods’ case, it punishes poor behavior. Sponsors such as Nielsen, AT&T, Gillete and Gatorade have all either suspended or removed their endorsement deals with Tiger due to his moral mistakes.” ...
An analogy for good government
Riffing off of Lord Acton’s quote on liberty and good government, I came up with an analogy that was well-received at last month’s inaugural Acton on Tap. In his essay, “The History of Freedom in Antiquity,” Acton said the following: Now Liberty and good government do not exclude each other; and there are excellent reasons why they should go together; but they do not necessarily go together. Liberty is not a means to a higher political end. It is itself...
Two Cheers for the Bishops of England and Wales
Choosing the Common Good from Catholic Westminster on Vimeo. In today’s Acton Commentary, I review a new statement titled Choosing the Common Good (download it here) from the Catholic Bishops’ Conference of England and Wales. In the introductory video linked above, The Most Rev. Vincent Nichols, Archbishop of Westminster, introduces Choosing the Common Good and discusses the key themes in Catholic Social Teaching “as a contribution to the wide-ranging debate about the values and vision that underpin our society.” Here...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved