Illinois was the only state to borrow from an emergency fund set up by the Federal Reserve last year to meet state expenses during the height of the pandemic. And the plan to pay off those borrowed billions was centered around using some of the COVID-19 relief dollars appropriated from Congress.
But early on it appears the Federal Government says that’s not allowed. According to Governor JB Pritzker the state remains in close communication with Washington DC to change the interpretation of the law.
“With the federal government sending us dollars and then telling us that we can’t then send those dollars back to the federal government to pay for the borrowing that we took out last year, clearly doesn’t make a lot of sense and so we have talked to the treasury department about that.”
Illinois borrowed about $3 billion from the Federal Reserve’s liquidity fund.
***Report Courtesy of farmweeknow.com***
