US Treasury Says States Are Tapping Federal COVID-19 Relief Funds

WASHINGTON, Oct. 14 (Reuters) – Federal COVID-19 relief funds provided to states and communities have prevented budget cuts and severe layoffs, bolstered pandemic response efforts, and facilitated longer-term investments through the country, the US Treasury Department said Thursday.

Early reports show that U.S. states have allocated or budgeted 45% of the federal COVID-19 relief funds they had available as of July 31, with a greater proportion of funds likely allocated in the past two months, he said. declared.

In a blog, Treasury Recovery Director Jacob Leibenluft said the creation of the $ 350 billion Coronavirus State and Local Fiscal Recovery Fund (SLRFF) as part of the US bailout was helping states and governments to avoid the drastic cuts observed after the global crisis of 2008-2009. financial crisis. The US bailout went into effect in March.

“Just knowing these funds were in their coffers allowed state and local governments to avoid budget cuts and layoffs, preventing a repeat of the Great Recession,” Leibenluft said.

He said the Treasury had already provided more than $ 240 billion of the total to state, territorial, local and tribal governments, and early reports showed they were using the money wisely.

For example, the governor of Hawaii rescinded plans to lay off more than 10,000 state employees and cut the state budget by $ 600 million less than a week after the plan was passed. American rescue.

Governments were also using the funds to integrate more people into the workforce and develop their economies, Leibenluft said.

He said Snohomish County, Washington, was funding programs to provide displaced workers with skills training to access high-demand jobs in growing industries, while County of ‘Orange, Florida, was planning to fund child care in areas of high poverty.

Reporting by Andrea Shalal and David Lawder; edited by Jonathan Oatis and Cynthia Osterman

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