U.S. Treasury launches access to $350 billion in state/local COVID-19 aid
The U.S. Treasury launched access to $350 billion in COVID-19 aid for state, local, tribal and territorial governments on Monday, releasing rules for allowable uses and a prohibition on tax cuts by recipient states, Trend reports citing Reuters.
The Treasury said that states with seasonally adjusted unemployment rates that are now 2 percentage points above levels in February 2020 can receive all of the funds they are due immediately. But those with smaller increases in unemployment will get their funds in two payments a year apart.
The total funding for states in President Joe Biden’s American Rescue Plan Act is $195.3 billion.
Treasury said $65.1 billion has been allocated to counties and $45.6 billion for metropolitan cities, which will both get their funds in two tranches a year apart, with the first payment coming in May.
Tribal governments, which receive a combined $20 billion, will receive an initial payment in May and a second payment in June based on employment data. The $4.5 billion allocated for U.S. territories will all be delivered in May, Treasury said.