U.S. Treasury grants more flexibility state-local aid funding rules

FILE PHOTO: Signage is seen at the United States Department of the Treasury headquarters in Washington, D.C.
FILE PHOTO: Signage is seen at the United States Department of the Treasury headquarters in Washington, D.C., U.S., August 29, 2020. REUTERS/Andrew Kelly/File Photo

January 6, 2022

WASHINGTON (Reuters) – The U.S. Treasury said on Thursday it granted more flexibility to state, local and tribal governments in spending $350 billion in COVID-19 aid funds, issuing new final rules on the program launched last year.

The Treasury said that the new rules expand the uses on which recipient governments can spend their allotted funds, including child care and early education services, addressing learning losses and affordable housing development to pandemic-hit communities.

The final rules also expand support for public sector hiring and allow a broader group of essential workers to receive premium pay. They also expand eligible capital investment projects for health infrastructure and, water, sewer and broadband infrastructure, the Treasury said.

(Reporting by David Lawder)