South Carolina Gov. Henry McMaster waves to his wife, Peggy, as he speaks during the Richland County GOP convention on Friday, April 30, 2021, in Columbia, S.C.
COLUMBIA, S.C. (AP) — State and local governments in South Carolina are getting nearly $2.5 billion in new federal coronavirus aid, as the state begins to phase out a different federal jobless benefit the governor says is disincentivizing people to return to the workplace.
The funds announced this week are part of a $350 billion allocation being distributed to state and local governments, a piece of President Joe Biden’s larger $1.9 trillion coronavirus relief package that became law in March.
All of South Carolina’s 46 counties and some cities will get the money, which could soon begin arriving in state and local hands, according to the White House.
Treasury Department guidance listed broad categories for spending the funds, like public health costs, or offsetting harm from the downturn to workers, small businesses and affected industries. Money can also replace lost public sector revenues and be invested in water, sewer and broadband internet.
But the Treasury Department has also placed restrictions, including a prohibition on using the money to cut taxes, pay down debt or bolster reserve funds.
The distribution comes as South Carolina phases out its participation in another federal coronavirus aid component. Last week, Gov. Henry McMaster announced that, starting June 30, South Carolina will opt out of the federal unemployment programs that have been providing extra money to jobless residents, in light of “unprecedented” workforce shortages across the state.