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Next U.S. state to settle COVID relief fund misuse case by end of 2025?
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Massachusetts Settles $2.5 Billion Federal COVID Relief Fund Dispute for $2.1 Billion, Reducing Liability by $1 Billion
Jan 20, 2025, 07:46 PM
The Massachusetts state government has reached an agreement with the U.S. Department of Labor to settle a $2.5 billion liability stemming from the improper use of federal COVID-19 relief funds intended for unemployment claims dating back to 2020. This settlement reduces the total amount owed by approximately $1 billion, resulting in a final obligation of $2.1 billion. The deal addresses a significant error in the allocation of funds during the pandemic, which has been under scrutiny since the misuse was identified. The settlement is part of ongoing efforts to rectify financial discrepancies related to COVID-19 relief efforts.
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