Axios What's Next

July 19, 2022
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Today's Smart Brevity count: 1,147 words ... 4½ minutes.
1 big thing: How cities are spending all that COVID cash

Despite lawsuits and political name-calling about how cities, counties and states are spending their COVID-19 relief funds, much of the money is going to the mundane purposes it was meant for, Jennifer A. Kingson reports — like paying government workers and replacing tax revenue lost during the pandemic, U.S. Treasury Department data shows.
Why it matters: Many local lawmakers are busy deciding how to spend their share of the $350 billion in emergency funding from the American Rescue Plan Act (ARPA), and the flame-throwing going on overhead can singe the process.
- Republicans have lambasted what they call "boondoggles" like building pickleball courts, hiring social media managers and trying to lure World Cup soccer to New Jersey.
- Democrats point to the broad mandate behind the funds, which can be used for everything from public health and economic recovery to infrastructure and administrative costs.
- There's a clock ticking: Communities have through 2024 to budget their money and 2026 to spend it — or they lose it.
Driving the news: Republicans are challenging how the ARPA funds can — or should — be used. Yet at the same time, new analyses show such funds are largely being pledged to unsexy-but-vital projects, like general revenue replenishment, broadband initiatives, wastewater systems and unemployment insurance.
Democrats counter that ARPA funds are being spent on "transformative" investments in everything from job creation and housing inequity to long-deferred capital projects.
- "There’s an acute need for these funds," said Vince Williams, the president of the National League of Cities and mayor of Union City, Georgia. "This funding is going to help us make a huge dent in some of the quality of life issues we have been ignoring for a number of years."
- Williams — who was attacked for dedicating some of his city's money to an urban greenway — said the $8 million that Union City received will also go to paying front-line workers and reducing food insecurity for seniors.
- "I don’t know of anyone that's using these funds for frivolous or foolish things," he told Axios.
By the numbers: One new analysis shows that cities and counties had budgeted 41% of their ARPA funds by the end of 2021 — the latest numbers available from Treasury.
- The money is primarily going "to address many of the long-standing challenges and disparities that exposed communities to disproportionate impacts of the pandemic," said Alan Berube of Brookings Metro, an author of the report.
Between the lines: Partisan squabbling is adding a layer of headache to the already-challenging process of budgeting and spending COVID relief money — which has sent many governments scrambling to hire vendors and pay them on time.
- "This is unprecedented," said Ernesto Freire, chief of staff at Bloomberg Associates, which is advising Chicago and Newark on their ARPA spending. "Nobody has seen this much money come in at one time — plus, the political pressure tied to it."
Motor City kudos: Among the cities earning plaudits for how they're using ARPA funds: Detroit, which plans to spend $250 million on city services and infrastructure, $105 million on jobs, $95 million on blight remediation and $45 million on the digital divide.
The bottom line: The ARPA funds are giving local governments an unprecedented opportunity to make creative, meaningful and lasting investments — if they can skirt the political obstacles.
2. The U.K.'s melting runways are a climate warning
Sheltering from the sun on opening day of the Farnborough International Airshow on July 18. Photo: Jason Alden/Bloomberg via Getty Images
The record-shattering heat plaguing the U.K. this week is wreaking havoc on local airports, as high temperatures damage runways that weren't built to withstand the sweltering conditions, Alex Fitzpatrick reports.
Why it matters: These airports' struggles are yet another example of our infrastructure failing to keep up with our rapidly changing climate reality.
Driving the news: London Luton Airport and Brize Norton (a Royal Air Force base) both reported runway issues yesterday as temperatures approached 100°F in parts of the U.K.
The details: Like many other U.K. airports, the fields mentioned above feature runways made of asphalt.
- While cheaper and easier to maintain than concrete, asphalt is also more prone to dangerous softening in extreme heat. That's not usually a problem in the U.K. — but it is right now.
- The runways themselves aren't the only issue. Other parts of the airports, like taxiways and gate areas, can also suffer heat damage.
3. What really counts as "broadband"?
FCC Chair Jessica Rosenworcel. Photo: Kevin Dietsch/Getty Images
A top U.S. telecoms official wants to raise the bar for what's considered "broadband" internet, Axios' Ina Fried reports.
Why it matters: The Federal Communications Commission's broadband standards haven't been updated since 2015, despite our increased reliance on speedy connections.
- Internet access advocates argue the current definition hides the true size of America's broadband gap.
Details: Under FCC Chair Jessica Rosenworcel's proposal, users would need 100 megabits per second download speeds and 20 megabits per second uploads to qualify as having broadband access.
- The current standard is 25 megabits per second for downloads and 3 megabits per second for uploads.
4. Surfing the web with brain waves
Illustration: Eniola Odetunde/Axios
A doctor at Mount Sinai West in New York recently implanted a brain-computer interface in an ALS patient, Bloomberg reports. The procedure was the first in the U.S. using technology from medtech startup Synchron.
- "The hope is that the patient, who's lost the ability to move and speak, will be able to surf the web and communicate via email and text simply by thinking," writes Bloomberg.
Why it matters: Devices that allow disabled patients to operate computers with their thoughts sit at the cutting edge of accessibility tech.
The details: The device "can be inserted into the brain without cutting through a person’s skull or damaging their tissue," per Bloomberg.
- That device is then connected to a secondary gadget implanted in a patient's chest.
- The equipment "reads the signals when neurons fire in the brain, and the computing device amplifies those signals and sends them out to a computer or smartphone via Bluetooth."
Yes, but: Like other brain-computer interface tech, Synchron's innovation has its limitations.
- "The device can’t translate whole sentences. Rather, a patient with the implant picks letters one by one on a screen, and the technology converts those 'yes or no' thoughts into commands."
The big picture: The recent procedure puts Synchron ahead of its most well-known rival: Elon Musk's Neuralink.
5. 🎮 We're putting the controllers down
Elden Ring. Screenshot courtesy FromSoftware
Spending on video games in the U.S. was down 10% through the first half of the year, Axios' Stephen Totilo reports, dropping to $26.3 billion.
Why it matters: It's another sign the gaming market is cooling, due in part to a lack of major releases and constraints on console supply.
Details: Most major categories dropped when comparing the first half of 2022 to 2021, per tracking firm NPD.
- Game content spending was down 10%.
- Hardware spending was down 9%.
- Accessories were down 14%.
The bottom line: The numbers underscore the many impacts of a pandemic that temporarily intensified the public’s appetite for games and continues to make it harder for people to create and sell new stuff to play.
A hearty thanks to What's Next copy editor Amy Stern.
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