Federal debt deal could require $2.2 billion in COVID relief from TN, GA, AL and NC | Local News

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The federal national debt limit agreement could cost the Tennessee Valley states billions of already pledged money.

The deal reached between House Speaker Kevin McCarthy and President Joe Biden would include the federal government taking over more than $300 billion in unspent COVID relief funds from states.

This would include $2.2 billion allocated to Tennessee, Georgia, Alabama and North Carolina, but has not yet been promised to anyone.

Earlier this year, YCAP, a YMCA program for teens and youth, expanded to the Chris Ramsey Community Center with a $300,000 grant from the Chattanooga City Council as part of its relief fund allocation. COVID.

“It gave me something to look forward to every day,” said YCAP boxing coordinator Roger Hilley. “It gave me the resources I needed to be the young man I am today.”

The program offers lessons in boxing, guitar, gardening, and more.

It’s meant to provide children with an outlet so they don’t get into trouble.

“They say it’s the best part of their day,” Hilley said. “YCAP is a second home for them, it’s a safe place.”

The program used COVID relief money to open its fourth location and expand to the Brainerd area.

“We just want every child who comes to us to feel like they’re at home,” said executive director Andy Smith. “We just want to meet those needs and detect the behaviors of those children before they escalate into real crimes.”

The federal government’s debt ceiling agreement would take back any COVID aid dollars that have not yet been spent or promised to anyone, bringing down the $93.9 billion allocated to states. of our region.

Here’s how much the federal government would claw back per state in our region if the budget passes:

Tennessee: $500 million Georgia: $600 million Alabama: $300 million North Carolina: $800 million

You can find a detailed state-by-state breakdown of COVID relief fund allocations here.

“Appropriation officials will be able to reclaim and reallocate these funds to priorities other than defense,” said Michael Linden, associate executive director in the Office of Management and Budget.

Hilley and Smith said they were using their share of the money already allocated wisely.

“YCAP was just the advice I needed and gave me structure in my life,” Hilley said.

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