"I am delighted that the Treasury Department has acted quickly to get this vital aid flowing to the states," said Senator Collins. "Maine can desperately use this assistance, which is immediate and short-term, to close its budget gap, and to continue to provide vital services to citizens."
States will be required to file a letter of certification with the U.S. Department of Treasury stating that the funds will be used for essential government services or to cover the costs of unfunded federal mandates. Treasury could release funds to the states as soon as 48 hours after the states submit their letters of certification and some states could see their first aid dollars as early as Monday.
Maine's share of Collins's state aid package is approximately $115.6 million over the next 18 months, and the state will receive $25 million in the initial release of funds.
U.S. Department of the Treasury Secretary John Snow is expected to notify states in a letter Wednesday about the minimal procedures and requirements the states must meet in order to receive the funds. The law provided 45 days from its signing for the U.S. Department of the Treasury to develop guidelines on how states could apply for and use the funds.
The economic growth legislation signed into law by President Bush last Wednesday includes Collins's $20 billion package of aid for states with half dedicated to increasing the federal share of Medicaid costs and the other half in direct aid to state governments. Collins introduced her state aid package along with Senators Ben Nelson (D-NB), Jay Rockefeller (D-WV), and Gordon Smith (R-OR).