Yellen promises that local aid will be distributed quickly after the stimulus is passed

Treasury Secretary Janet Yellen promised on Tuesday that the money allocated for state and local government aid under the new incentive law will come out the door as soon as possible.

With the House’s approval of the $ 1.9 trillion spending plan imminent, Yellen said a priority will be to channel the $ 350 billion allocated to make up for revenue shortfalls.

“The rescue plan will fund a massive immunization campaign. It will ensure people have the opportunity to keep a roof over their heads and that unemployment insurance checks continue to be mailed,” she told a virtual National League of Cities conference. “In the coming days, our Treasury team will work to get this help as quickly as possible – and the one that makes the biggest impact.”

Government aid has been one of the main bottlenecks in getting President Joe Biden’s stimulus plan through Congress. The measure has not received any Republican support in the Senate and is likely to face the same fate in the House.

GOP members say the allocation is a help to poorly run states and municipalities, while Democrats say it is an important part of the recovery.

“If we do our job, I’m confident that Americans will reach the other side of this pandemic – and be greeted there with some measure of prosperity. By the end of the year, I expect your city’s economies to look much more like 2019. more than 2020, “Yellen said.

Along with state and local aid, the bill also provides another $ 1,400 cash infusion to individuals and allocates funding for the fight against health care against Covid-19 and a number of other non-direct measures. related to the pandemic.

Yellen said the spending package “is not just about fighting fires and resolving crises, but about building a better country.”

“This law will see us through the immediate crisis; it eliminates the chaos before our eyes and, finally, let us look up to the future,” she added.