Stimulus programs hobbled by regulations

[Commentary] The American Recovery and Reinvestment Act -- also known as the stimulus -- was supposed to be timely, targeted and temporary. A year and a half since its passing, much of the money devoted to tax cuts and aid to states and social benefits has been paid out. But some of the act's more ambitious programs have failed on the first score. The latest example comes from the Energy Department's inspector general, who last week reported that a $3.2 billion program to fund energy-efficiency improvements in state and local government buildings has spent just over 8 percent of its cash. "The slow rate of spending block grant funds has neither met initial departmental targets nor achieved the desired stimulative effect on the nation's economy," Inspector General Gregory H. Friedman wrote. That's partially because the Energy Department didn't have the staff to manage applications to the energy-efficiency program. It's also because state or local proposals had to comply with regulations such as the Recovery Act's Buy American provision and historical preservation rules, which require approvals for physical changes to buildings possessing "historical significance."