01-05-2025
Watchdog group says Boston vendor may have misused federal pandemic recovery grant money
The city of Boston is now investigating whether a vendor may have misused federal grant money meant for pandemic recovery.
According to the watchdog group that alerted City Hall, the Three Squares Main Street Program provided altered bank statements to the city, which amounted to about $32,000. The Three Squares Main Street Program is made up of 20 nonprofits that support the city's neighborhood commercial districts and small businesses.
The City of Boston Finance Commission said the grants used money from the Federal American Rescue Plan Act, which was signed in 2021 to provide financial recovery from the pandemic. The act provided $350 billion to state and local governments. The commission already conducted an initial investigation and recommended the city temporarily withhold further payments to the Three Squares Main Street Program.
"We're grateful for City staff who have been working to ensure oversight of every dollar of federal funds spent on pandemic recovery, including grants to nonprofit organizations. Through their diligence, these financial irregularities were identified and reported to the appropriate agencies to take action. The City will continue to support any further investigation, and is undertaking a further audit to ensure full accountability," said a spokesperson for the city of Boston in a statement.
