US Treasury has launched $ 350BN in local state COVID grants Coronavirus pandemic News

The funds can be used by state, local, tribal and territorial governments to provide assistance to unemployed workers and hard-hit communities and to pay premiums to key workers.

The U.S. Treasury Department launched $ 350 billion in access to COVID-19 aid on Monday for state, local, tribal and territorial governments, releasing rules for acceptable uses and banning tax cuts by recipient states.

The Treasury said that in February 2020, states with annual unemployment rates that are not adjusted to the level can immediately receive all the funds they owe. But those with lower unemployment growth will get the funds in two payments a year.

The total funding for states under President Joe Biden’s American Rescue Plan Act is $ 195.3 billion.

The Treasury said $ 65.1 billion has been allocated to the regions and $ 45.6 billion to the metropolitan cities, both of which will receive funding in two parts of the year, with the first payment to be made in May.

Tribal governments, combined with $ 20 billion, will receive the first payment in May and the second payment in June based on employment data. The $ 4.5 billion allocated for U.S. territory will be delivered in May, the Treasury said.

The Treasury said that among the uses that can be used for state and local funds are public health responses to the coronavirus pandemic and the replacement of lost revenue as a result of the pandemic defined in the Treasury’s guidance formula.

Uses address the negative economic impacts of the pandemic, including aid to unemployed workers and affected communities and the payment of premiums to key workers.

The Treasury said the funds could be invested in improvements to water, sewer and broadband Internet infrastructure.

But the Treasury maintained its intentions to ban the use of funds to offset tax cuts, a provision opposed by several Republican states.

“If a state or territory cuts taxes, they will have to demonstrate how they have paid tax cuts from sources other than the Coronavirus State Fiscal Recovery Fund – enforcing policies to generate other revenue, reduce spending, or increase through higher revenue,” he said. Treasury.

States will have to reimburse COVID-19 aid funds in the amount of tax cuts if they cannot prove such compensation, the Treasury said.