US Treasury launches $350BN in state, local COVID aid

The funds can be used by state, local, tribal and territorial governments to offer aid to unemployed workers and hard-hit communities and premium pay to essential workers.

The United States Department of the Treasury launched access to $350bn 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. The Treasury said that states with seasonally adjusted unemployment rates that are now two 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 $195.3bn.