(Bloomberg) -- Massachusetts is seizing on $2.5 billion of federal relief funds and a revenue surplus to pay bonuses to essential workers, bolster affordable housing and fund health-care services.
Governor Charlie Baker, a Republican, on Monday signed a $4 billion spending plan that invests in a bevy of areas like housing, health care and workforce development to help provide relief from Covid-19. His administration emphasized that the money will help residents that were disproportionately impacted by the pandemic.
The plan uses about half of its nearly $5.3 billion allocation from the Biden administration’s American Rescue Plan, which includes $350 billion of aid for states and local governments. Another $1.45 billion will come from surplus revenue from fiscal 2021.
A $500 million bonus fund for low-wage, essential workers is one of the biggest spending areas, making Massachusetts the latest recipient of federal Covid-19 aid to do so in an attempt to support workers who faced risks from the pandemic. About one million residents could receive checks of $500, the Baker administration said.
“We are proud of the job these workers did to pull together, look after vulnerable members of the community, and keep the Commonwealth on a path to recovery,” Baker said in a letter to lawmakers.
The spending plan also includes $500 million to provide an infusion to Massachusetts’ unemployment compensation trust fund, according to the governor’s office. It will also spend about $947.5 million on health-care related uses, including $400 million for addiction treatment and behavioral health services. Additionally, $595 million will be used on housing-related uses, such as money to help first-time home buyers.
Massachusetts has been slow to spend the federal aid it received in May. Baker said in his letter that the Democratic-led legislature took “considerable time” to send his administration the spending legislation. The commonwealth still has about $2.3 billion left to spend.
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