WASHINGTON (Reuters) – Payments to U.S. states, municipalities, territories and tribal governments under President Joe Biden’s stimulus act will take about 60 days to go out as the U.S. Treasury writes rules on how the funds can be used, Treasury officials said on Thursday.
A Treasury official told reporters on a conference call that the department would consult with state and local governments in coming weeks on the program, which provides up to $350 billion to close budget gaps opened up by the coronavirus pandemic.
The official, asked about a lawsuit filed by Ohio Attorney General Dave Yost challenging a provision that prohibits coronavirus funds from being used to subsidize tax cuts, said it was not new for Congress to establish reasonable conditions for the use of federal funds provided to states.
Yost argued on Thursday that the provision violates the U.S. Constitution by limiting Ohio’s authority over its own state taxation.
Another Treasury official said that the Internal Revenue Service aims to have a new internet portal operational by late spring or early summer that will allow low-income Americans to register to receive an expanded Child Tax Credit of $3,600 for each child under 6 years of age or $3,000 to those up to 18 years.
The coronavirus aid package extends the credit to U.S. territories and pays it out in periodic payments to families below certain income levels, a provision aimed at reducing child poverty.
(Reporting by David Lawder; Editing by Chris Reese and David Gregorio)