U.S. Treasury announces guidance for state and local $350 billion Covid aid package

Author: Greg Michalowski | Category: News

U.S. Treasury launches guidance for Covid relief under the American rescue plan act 

  • where unemployment rate is two percentage points above February 2020 rate, can receive funding in single payment. State funding totals $195.3 billion
  • with less than two percentage point increase in unemployment rate will receive funds in 2 payments, a year apart
  • eligible local governments should expect funding in two tranches with the first in May and the second in May 2022
  • allowed uses for funds include replacing revenues lost to pandemic premium pay for essential workers, public health expenditures, addressing  negative economic impacts from pandemic
  • will also allow funds to be invested in water, sewer, broadband infrastructure
  • states, territories may not use funds to offset net revenue reductions from tax law changes between March 3 and last day of fiscal year in which funds are spent
  • note state/local recipient may use funds to make a deposit to a pension fund
Invest in yourself. See our forex education hub.
By continuing to browse our site you agree to our use of cookies, revised Privacy Notice and Terms of Service. More information about cookiesClose