Home
/
RELIGION & LIBERTY ONLINE
/
States’ rights, federal behavior: Alabama and COVID-19 spending
States’ rights, federal behavior: Alabama and COVID-19 spending
Jan 30, 2026 10:45 PM

“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
One Good Thing about Term Limits
I’m ambivalent about the value of term limits, but one thing that can certainly be counted in their favor is that they (at some point at least), force lawmakers to go out and try to make a living in the economic environment which they helped to shape. In Michigan, nearly half of the 110-member House of Representatives will consist of new members. Of the 46 new members, 44 ing from seats that were open because of term limits. And now...
Neuhaus and the Academy
Part of the reason Richard John Neuhaus will be remembered is for his impact on Christians in higher education. There is no question that his seminal book The Naked Public Square and then his journal First Things changed the way many of us think about religion and culture. He also did something I think is nearly impossible with FT. He created a serious journal that causes many people (a great many of them professors) to do a little dance when...
Acton Commentary: A Second Opinion on Employer Responsibility for Heath Care
Health care reform is likely to move back into the public eye as a new Congress and a new Obama administration prepare to start work this month. In this week’s Acton Commentary, Dr. Don Condit argues for a move away from employer funded health care benefits to a portable system. “Corporate human resources departments should not be viewed as the main source of support for Americans’ health care,” he writes. “The iniquitous government subsidy for employer-based health care could be...
Book Review: My Grandfather’s Son
Perhaps the most striking theme of Associate Justice Clarence Thomas’s autobiography My Grandfather’s Son is just how many obstacles Thomas had to e to reach the high judicial position he currently holds. Thomas was born into poverty, abandoned by his father, and was raised in the segregated South all before achieving the American Dream. At the same time, it was Thomas’s poverty-stricken circumstances that would help propel him to a world of greater opportunity. Because of his mother’s poverty, when...
Conservative/Libertarian Books for the Acton Reader
It is the new year and the time of reflection is upon us. In 2008, we witnessed a revolutionary left-liberal presidential victory and the onset of substantial economic challenges. Under the circumstances, I thought now might be a good time to propose a list of outstanding books for the intellectually curious friend or fellow traveler. I would not dare attempt to put these in order based on excellence. Just consider it a series of number ones. 1. Lancelot by Walker...
Cardinal Cormac Murphy O’Connor and the ‘Death’ of Capitalism
Cardinal Cormac Murphy-O’Connor, the Roman Catholic Archbishop of Westminster and President of the Bishops’ Conference of England and Wales, has touched off a row over remarks he made recently concerning the demise of capitalism. Here’s the context from the Daily Telegraph, a British newspaper: [the Cardinal] made the astonishing claim at a lavish fund-raising dinner at Claridges which secured pledges of hundreds of thousands of pounds for the catholic church. The Cardinal, dressed in his full clerical regalia, said in...
Summing Up a Great Man’s Life
Richard John Neuhaus is dead. We’ve lost some big ones in the last year. Many of you will not realize how big this one was. I pray Jody Bottum and some of the others in the First Things (Neuhaus’ hugely influential journal) world can carry on his legacy. Though Neuhaus’ death leaves a chasm to be filled, I think Dr. Bottum is the right man for it. Anthony Sacramone is a former managing editor of First Things. He is also...
Ignorance, Humility, and Economics
I like Robert Samuelson’s recent column about the difficulty (impossibility?) of accurately analyzing economic reality, let alone predicting its future. Over the past several months a few people, mistaking me for someone who knows a great deal about economics, have asked what I think about the financial crisis, the stock market, the recession, etc. My response is usually something along the lines of the following: Anyone who pretends to know and pletely the causes of the economic meltdown and/or how...
Remembering Father Richard John Neuhaus
For those concerned with a vigorous intellectual engagement of the religious idea with the secular culture, these past 12 months have been a difficult period. On February 28, 2008, William F. Buckley, Jr. the intellectual godfather of the conservative movement in America, died. Only last month, Avery Cardinal Dulles, SJ, passed away at 90 years old. Cardinal Dulles was one of the Catholic Church’s most prominent theologians, a thinker of great subtlety, and a descendent from a veritable American Brahmin...
Farewell, Father Neuhaus
First Things has announced that Father Richard John Neuhaus died this morning. I am hardly qualified to write a eulogy, having never met the man. No doubt others, including one or two Acton colleagues who knew him better, will perform this service admirably. But I pelled to offer a few words, as I have long admired Fr. Neuhaus and his vital work, in particular the journal he edited for many years, First Things (FT). In the mid-1990s, I was a...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved