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Nearly $5 billion from federal stimulus bill on its way to Minnesota

(The Center Square) – Nearly $5 billion is heading to state and local Minnesota governments, thanks to a $1.9 trillion stimulus package signed into law by President Joe Biden.

About $2.6 billion will flow to state government while $2.1 billion is diverted to cities and counties to recover from costs related to pandemic responses.

Even before the stimulus, Minnesota projected a $1.6 billion surplus and has seen higher-than-expected tax revenue during the pandemic.

A separate allocation of $20 billion will be sent to the tribal governments.

No Republicans in Congress supported the package, criticizing it as too expensive and arguing that only 9% of the bill funded COVID-19 relief and describing the rest as “pork projects.”

Hennepin County will receive $245 million, Ramsey County $107 million, and Dakota County $83 million.

Minneapolis will get $281 million, or roughly $661 per city resident.

City spokesperson Casper Hill told The Center Square in an email Minneapolis has began the process of determining allocation “equitably and efficiently.”

“A workgroup made up of subject matter experts is in the process of developing recommendations for City leadership,” Hill wrote. “Rules around the use of these federal funds, which will come from the U.S. Treasury Department, will provide additional clarity and guidance to the City.”

St. Paul was allocated almost $172 million. City representatives haven’t yet responded to an inquiry about spending plans.

About $60 million is headed for Duluth.

Duluth Mayor Emily Larson welcomed the allocation, saying the city’s COVID-19 response to protect the public health of residents hurt its revenue streams.

“While we are still working through the specifics of the bill and reading all the fine print, the City of Duluth is well positioned to fully utilize this funding,” Larson said in a statement.

Larson said the city will share more details in the not-yet scheduled virtual State of the City address.


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