Ducey programs endanger AZ COVID-19 aid money, Treasury warns - Market News
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Ducey programs endanger AZ COVID-19 aid money, Treasury warns

Arizona Governor Doug Ducey gives his final State of the State address during the Arizona Legislature on January 10, 2022.

Federal officials are escalating their threat to withhold federal stimulus dollars from Arizona over Governor Doug Ducey’s refusal to make changes to two programs that provide funding to schools that fail to implement recommended public health protocols.

In a Friday letter to Ducey’s office, a U.S. Treasury Department official warned again that the two initiatives the governor unveiled in August appeared to prevent COVID-19 mitigation protocols, and warned more strongly about the consequences of the coronavirus outbreak. continue the programs as they are.

Ducey must send funding to eligible applications or make changes to the two curricula within 60 days or Treasury may begin to recoup funding, the letter said.

“Treasury may also withhold funds from the second tranche of (American Rescue Plan) funds from the State of Arizona until Treasury has received information confirming that the issues described above have been adequately addressed,” reads a letter from Deputy Chief Compliance Officer Kathleen Victorino. Arizona and other states are scheduled to receive their second installment of US bailout funds this spring, with more than $2 billion headed for Grand Canyon State.