Iowa to Get $1.48B in Federal Coronavirus Aid

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FILE- In this Jan. 7, 2020, file photo the Iowa Capitol Building is seen in Des Moines, Iowa. (AP Photo/Charlie Neibergall)

DES MOINES, Iowa (AP) — Iowa will get $1.48 billion in aid under the federal government’s plan to help states hit by the coronavirus pandemic, according to new numbers released Monday.

The U.S. Treasury Department announced a state-by-state funding breakdown for President Joe Biden’s American Rescue Plan, an effort to restore jobs lost during the pandemic and replenish the coffers of governments that saw huge declines in tax revenue.

The plan will distribute $350 billion to state, local, territorial and tribal governments.

The Treasury Department said governments can use the money to cover local public health costs, address the economic impacts of the pandemic and replace lost tax revenue. They can also spend it on premium pay for essential workers and water, sewer and broadband infrastructure projects.

Gov. Kim Reynolds has expressed concerns about certain expenditures not being allowed, which could force the state to repay money to the federal government.

“If we don’t know what the guidelines are, it makes it hard to spend the money, because we don’t want to spend it in the wrong way and have it clawed back,” she said.

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