Treasury Says It Has Already Distributed $105B in State, Local Aid

The Treasury Building in Washington, D.C.

The Treasury Building in Washington, D.C. AP Photo/Patrick Semansky

 

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That's about one-third of the total $350 billion available from the American Rescue Plan relief fund for states and localities, which launched less than two weeks ago.

The Treasury Department said Thursday it had distributed $105.3 billion of a $350 billion pool of American Rescue Plan funding that is available for state, local, tribal and territorial governments.

Treasury released guidelines about 11 days ago for how the federal aid can be used, officially kicking off the program. “Almost a third of the funding has gone out the door, and I’m hopeful communities will be able to rehire teachers and help businesses re-open much sooner than otherwise," said Treasury Secretary Janet L. Yellen in a statement.

Over 1,500 recipients have received the Coronavirus State and Local Fiscal Recovery Funds, Treasury said. The funds are intended to help address hardships brought on by the Covid-19 public health crisis.

The funding can only be used for specific purposes outlined in law and in the Treasury guidelines. Some examples include replacing revenue lost due to the pandemic-driven economic downturn, water and broadband infrastructure and hazard pay for certain workers.

Under the program guidelines, local governments will receive funds in two tranches, with 50% set to be provided beginning this month and the balance delivered about year from now.

States that meet a certain unemployment threshold will receive their full allocation of funds in a single payment, while other states will receive their funding in two equal installments.

Counties and many cities are eligible for a combined amount of about $110 billion in direct aid. States and Washington, D.C. are in line to receive $195 billion.

More information about the program is available on the Treasury Department's website.

Brent Woodie is an associate editor at Route Fifty.

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