The state still wants to be able to use COVID relief dollars to pay back short-term loans from the federal government.
The Governor has said part of his plan for $8 billion in federal funds is to repay the loan the state took from the Federal Reserve’s Liquidity Fund. The Fed has said that’s not a proper use of those dollars. Both the Governor and US Senator Dick Durbin disagree.
The state was loaned about $3 billion last year. Comptroller Susana Mendoza has also been vocal about the state being able to use those dollars to pay off the borrowing.