By Sophie Quinton
Mar 11, 2021
The mammoth COVID-19 relief bill headed to President Joe Biden’s desk includes $195 billion in direct aid to states and the District of Columbia and $130 billion in direct aid for cities and counties. States with more unemployed residents will get a greater share of the money.
Under the final bill, states and localities would have to use the funds to respond to the COVID-19 crisis and economic downturn through measures such as assisting small businesses, boosting essential worker pay, funding government services affected by a revenue shortfall or making infrastructure investments.
Governments can’t use the money to pay for tax cuts or to shore up pension funds.