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Illinois state government is getting $7.5 billion in COVID relief funds – Journal Gazette and Times-Courier

Illinois state government is getting $7.5 billion in COVID relief funds – Journal Gazette and Times-Courier

Illinois state government is getting $7.5 billion in COVID relief funds The Illinois Statehouse is shown in May.  ERIN HOOLEY, CHICAGO TRIBUNE BRENDEN MOORE SPRINGFIELD — For most Americans, the impact of the most recent federal COVID-19 relief package has come (or will soon come) in the form of a $1,400 stimulus check wired directly

Illinois state government is getting $7.5 billion in COVID relief funds









Statehouse, meta, Springfield, capitol (copy)

The Illinois Statehouse is shown in May. 



ERIN HOOLEY, CHICAGO TRIBUNE


SPRINGFIELD — For most Americans, the impact of the most recent federal COVID-19 relief package has come (or will soon come) in the form of a $1,400 stimulus check wired directly to personal bank accounts.

But for governors, mayors and budget officials, the most promising sign that help is on the way comes from the $350 billion set aside in the $1.9 trillion American Rescue Plan for state and local governments, which have seen their revenues decimated by the COVID-19 pandemic.






Brad Cole

Illinois Municipal League Executive Director Brad Cole




In Illinois, state government is expected to receive about $7.5 billion in direct aid and local governments about $5.5 billion.

Of the latter, counties will receive about $2.4 billion, larger cities about $2.4 billion and smaller municipalities about $681 million.

Illinois will also receive $275 million for vaccine distribution, $1.5 billion for additional COVID-19 tests and other needs of local public health departments and $5 billion for K-12 schools.

Governments are expected to receive half their allotment in the next 60 to 90 days. The second round of funding will not arrive until at least 12 months after the first distribution.

There are restrictions, mainly that the funds cannot be used to make pension payments or to provide tax relief. But, it is more flexible than past packages.

The funds can be used for costs associated with responding to the public health emergency, such as the purchase of personal protective equipment and providing rental assistance and grants to small businesses.

They can also be used to replace lost tax revenue and to make investments in water, sewer and broadband infrastructure.

Illinois Municipal League executive director Brad Cole said the package was “critical” for local governments, which have seen dips in sales tax revenue and, in many cases, increased costs associated with the pandemic response.

And, unlike the first relief bill signed last year, when states exerted a larger role in distributing funds for local governments, these funds — though still to be divvied out by the states — will go directly to municipalities without additional restrictions attached.

“Local governments got tied up by the state governments across the nation in the federal CARES Act a year ago,” Cole said. “This is going to distribute the money directly and without additional restrictions. So it will make up for a lot that was lost in the first relief package.”

What to know about the coronavirus relief funding coming your way

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