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Activists to U.S. Treasury: Use Federal Aid for Pandemic Relief, Not Debt

Grassroots groups are imploring federal officials to make sure local governments get relief to those most in need, rather than banks. 

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Community groups are asking U.S. Treasury Secretary Janet Yellen to make sure federal aid goes to pandemic relief. 

Community groups are asking U.S. Treasury Secretary Janet Yellen to make sure federal aid goes to pandemic relief. 

 Photographer: WPA Pool/Getty Images

Dozens of community organizations from across the U.S. want Treasury Secretary Janet Yellen to issue rules that direct the latest round of relief funds into communities hardest hit by the pandemic and away from state and local debt repayments and police budgets.

Fifty-seven national and local groups are sending Yellen and President Joe Biden a letter Tuesday to maintain the current ban on states and cities using American Rescue Plan Act funds to repay debt. They also are asking that the aid not boost police budgets. Paying back loans and increasing funding for cops would come at the expense of community needs such a rental assistance, mental health programs, child care, homeless services and violence prevention, according to interviews with the organizations and local elected officials.