Republicans want legislative oversight over billions of dollars in federal COVID-19 relief funds coming to Minnesota through the American Rescue Plan, making it a top priority as they race to strike a deal on a two-year budget with Gov. Tim Walz and Democrats in the House.
They're also questioning a handful of small state contracts awarded in past rounds of federal relief, citing them as a reason more accountability is needed in spending money from the $1.9 trillion federal stimulus package Congress passed in March.
"This is not a partisan bill, this is not a Republican or a Democrat issue, this shouldn't be contentious," said Senate Finance Chair Julie Rosen, R-Fairmont. "We are here, 201 legislators, we were voted by our constituents to come here and appropriate money."
A similar proposal failed to gain traction with the DFL-led House last session, but as lawmakers face down a May 17 deadline to adjourn the regular session, spending the federal funds has emerged as a critical bargaining chip for the GOP in broader negotiations to pass a roughly $52 billion budget.
The U.S. Treasury Department announced Monday that Minnesota is in line for nearly $5 billion. That includes $2.8 billion slated for state government — $200 million more than initially anticipated — and another $2.1 billion for local governments.
That's on top of billions Minnesota has already received from previous rounds of pandemic aid through the $2.2 trillion CARES Act and the $900 billion relief bill Congress passed in December.
Republicans requested details on contracts that used a portion of the aid for COVID-19-related media and messaging. They raised concerns Tuesday with some of the state's use of federal dollars in that area, including contracts for up to hundreds of thousands of dollars for communications planning and support from two out-of-state consultants, Brigit Helgen and Kate Brickman, who have local DFL ties. Neither responded to a request for comment Tuesday. Walz's administration also contracted with Brian McClung, former Republican Gov. Tim Pawlenty's deputy chief of staff, for similar work.
"It's disappointing that Governor Walz is using COVID relief money to for wasteful and partisan purposes," Republican House Minority Leader Kurt Daudt said in a statement. "Both parties agree that the Governor should not have unilateral control over the billions in federal dollars — we need to make sure Minnesotans and their legislators have a voice and oversight over how this relief money is spent."