Indiana to use most of the remaining COVID-19 relief money for an unemployed federal loan
Indiana plans to use most of its remaining federal COVID-19 relief dollars to pay off a federal unemployment loan.
The state has about $ 600 million left in the federal CARES Act money it received earlier this year. And, without an extension, that money must be spent on expenses – directly related to the pandemic – incurred by the end of December.
Bureau of Management and Budget director Cris Johnston said the plan was to use $ 400 million to repay a loan the state owed withdraw from the federal government to cover the sharp increase in unemployment benefits.
“We think it’s safe to make a deposit to avoid this borrowing,” said Johnston.
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Meanwhile, a third of Hoosier restaurants say they won’t be open in six months and a national forecaster says the number of Hoosiers struggling to pay their rent or mortgages is a red flag for the Indiana.
Gov. Eric Holcomb said the state is considering those needs for the rest of its relief dollars.
“We are looking at restaurants and our hospitality industry and ways to help, not only in the future but also in the future,” said Holcomb.
Johnston said the state is also “working” on a waiting list for housing assistance and could provide more money, if needed.