Kemp Administration’s Handling of COVID Relief Funds Raises Questions Over Lack of Accountability

Photo byOffice of Governor Brian Kemp of Georgia

Two Years On, No Investigation into Kemp’s $1.1 Billion Cash Card Program

Two years have passed since the Kemp Administration solicited proposals to distribute $1.1 billion in federal COVID relief funds via $350 debit cards to Georgians receiving Medicaid, SNAP, and TANF benefits. The program, launched just before the November 2022 election, has been scrutinized for its rapid and irregular contracting process, with critics questioning why no formal investigation has been launched despite evidence of state law violations.

State Audit Uncovers Legal Violations

A state audit found that the administration exceeded its purchasing authority without approval and failed to properly post the solicitation for proposals on the Georgia Procurement Registry, violating state procurement laws. The Kemp Administration’s Office of Planning and Budget imposed specific requirements on four hand-picked companies that were invited to bid, including a mandate for the state to design the cards and a launch deadline of September 15, 2022. These stipulations significantly narrowed the pool of eligible bidders.

Rellevate Awarded Contract in Record Time

The contract was awarded in just seven days to Connecticut-based Rellevate, a gift card company with clients like Crocs and Dunkin’ Donuts, but no prior experience with government contracts. This decision was made despite the availability of two other bidders, Conduent and Stralto, both of which had extensive experience processing government benefit payments and robust security measures. According to the audit, state contracts of this nature typically take four to six months, or even up to a year, to finalize, raising further concerns about the expedited process.

Problems from the Start: Users Unable to Access Funds

On September 20, 2022, the first $350 cash assistance cards were distributed, coinciding with the dispatch of overseas and military ballots for the 2022 general election. Nearly immediately, tens of thousands of recipients reported issues accessing the funds on their cards, prompting public outcry and accusations of mismanagement. The timing of the program’s rollout, so close to the election, fueled further speculation about the administration’s motives and the potential for political gain.

Calls for Accountability Go Unanswered

Despite clear evidence of legal violations and numerous calls for accountability from state officials and watchdogs, no formal investigation has been launched by either the Attorney General or the Inspector General. Critics argue that the Kemp Administration has failed to take responsibility for the alleged missteps, leaving questions unanswered about the integrity of the contracting process and the decision-making behind the selection of Rellevate.

Lack of Oversight Undermines Public Trust

The absence of an investigation into the Kemp Administration’s handling of the $1.1 billion cash assistance program has drawn criticism from various quarters. Observers argue that the lack of transparency and accountability not only undermines public trust but also sets a concerning precedent for future state procurement practices. As the anniversary of the program's launch passes without any clear resolution, the demand for accountability continues to grow.